Russia Hits Ukrainian Grain Depots as a Foreign Ship Traverses Kyiv’s New Black Sea Corridor

Wheat prices climb more than 5 percent in trading Wednesday amid Russia’s attacks, which have caused grain prices to zigzag on global markets.

Odessa Regional Administration Press Office via AP
A granary in a Danube port near Odessa that was destroyed in a Russian drone attack, August 16, 2023. Odessa Regional Administration Press Office via AP

Russian drones pounded grain storage facilities and ports along the Danube River, which Ukraine has increasingly relied on as an alternative transport route to Europe after Moscow broke off a key wartime shipping agreement using the Black Sea.

At the same time, a loaded container ship stranded at the Black Sea port of Odessa since Russia’s full-scale invasion more than 17 months ago set sail along a temporary corridor established by Ukraine for merchant shipping.

Ukraine’s economy, crunched by the war, is heavily dependent on farming. Its agricultural exports, like those of Russia, are also crucial for world supplies of wheat, barley, sunflower oil, and other food crucial to developing nations.

A month ago, the Kremlin tore up an agreement brokered last summer by the UN and Turkey to ensure safe Ukraine grain exports through the Black Sea. Since then, Kyiv has sought to reroute transpot through the Danube and road and rail links into Europe. Yet transport costs that way are much higher, some European countries like Poland have balked at the consequences for local grain prices, and the Danube ports can’t handle the same volume as seaports.

Odessa’s governor, Oleh Kiper, said the primary targets of Russia’s overnight drone bombardment were port terminals and grain silos, including at the ports in the Danube delta. Air defenses managed to intercept 13 drones over Odessa and Mykolaiv regions, according to the Ukraine air force’s morning update.

It was the latest attack amid weeks of aerial strikes as Russia has targeted the Danube delta ports, which are only about 10 miles from the border with Romania, a NATO member. 

The Danube is Europe’s second-longest river and a key transport route. Separately, the New York Times reported that a 40-mile stretch of the Danube in Romania, called the Sulina Channel, has in recent days become a “crucial route” that can allow Ukrainian grain to ship to sea under NATO protection. 

Meanwhile, the container ship departing Odessa was the first vessel to set sail since July 16, according to Ukraine’s deputy prime minister, Oleksandr Kubrakov. It had been stuck in Odessa since February 2022.

The Hong Kong-flagged Joseph Schulte was traveling down a temporary corridor that Ukraine asked the International Maritime Organization to ratify. Washington has warned that the Russian military is preparing for possible attacks on civilian shipping vessels in the Black Sea.

Sea mines also make the voyage risky, and ship insurance costs are likely to be high for operators. Ukraine told the IMO it would “provide guarantees of compensation for damage.”

Analysts say Black Sea shipping has in general remained steady since the end of the grain deal, despite higher insurance rates, but shipments out of Ukraine have dropped off.

Last Sunday, a Russian warship fired warning shots at a Palau-flagged cargo ship in the southern Black Sea. According to Russia’s defense ministry, the Sukru Okan was heading northward to the Ukrainian Danube River port of Izmail.

Ship-tracking data analyzed by the AP confirmed that the Joseph Schulte was steaming south. The Joseph Schulte is carrying more than 30,000 tons of cargo, with 2,114 containers, including food products, according to Mr. Kubrakov.

He said the corridor will be primarily used to evacuate ships stuck in the Ukrainian ports of Chornomorsk, Odessa, and Pivdennyi since the outbreak of war.

In the meantime, wheat prices climbed more than 5 percent in Chicago trading Wednesday amid Russia’s attacks, which have caused grain prices to zigzag on global markets.

Prices for global commodities like wheat, rice and vegetable oil rose in July after months of declines, following the end of the grain deal and India’s restrictions on some rice exports, the UN Food and Agriculture Organization said.

The Joseph Schulte was the highest-value ship of the 60 still stuck in Ukraine since the war began, according to the senior manager of environment and trade for the International Chamber of Shipping, which represents 80 percent of the world’s commercial fleet, John Stawpert. He noted that China’s political closeness to Russia likely helped enable the ship’s departure. It is unlikely other vessels will follow, he said, either because of their flags or locations in Ukraine.

On the war’s front line, Ukrainian officials claimed another milestone in Kyiv’s grinding counteroffensive, with the deputy defense minister, Hanna Maliar, saying troops have retaken a village in the eastern Donetsk region.

The village of Urozhaine is near Staromaiorske, a hamlet that Ukraine also claimed to have recaptured recently. The claims could not be independently verified.

Ukraine appears to be trying to drive a wedge between Russian forces in the south, but it is up against strong defensive lines and is advancing without air support.


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