Ukraine is considering the possibility of using Baltic Sea ports for its grain exports, stated the Ministry of Agriculture in Kiev on Wednesday, following a similar measure taken by Russia, as both sides seek alternatives to the Black Sea routes, disrupted by the war between them, reports Reuters.
Sources have told the international press agency that Russian companies are reconfiguring fertilizer, coal, and other goods terminals in Russian ports from the Baltic Sea and the Arctic region to manage grain exports, after Ukrainian drone attacks have affected transports through the Black Sea.
The majority of Ukrainian goods, including cereals, have been redirected through the three Ukrainian ports on the Danube, after Russian attacks effectively blocked the Black Sea ports, which previously handled 90% of exports.
However, this adds approximately 50 dollars for each metric ton to the logistic costs, making Ukrainian cereals uncompetitive, and has created blockages.
High costs, logistical difficulties
“Baltic ports could handle exports of up to 20 million tons of cereals,” said the Ministry of Agriculture of Ukraine in a statement issued after a meeting between the ministers of agriculture from Ukraine and Estonia.
Transportation through the Baltic Sea would, however, add approximately 100 dollars per ton to export costs, the ministry specified.
To compensate for this, Ukraine would need international support of up to 2 billion dollars, the institution added.
The Ministry has not identified a potential source of funding, nor has it explained how the grains would reach the Baltic ports.
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