Shippers will not risk entering the ports of Ukraine until the Black Sea Grain Initiative resumes. Without protection and a safe grain corridor, “the Ukraine trade is dead.” It was reported by Bloomberg with reference to experts in the field of transportation and insurance on Wednesday, July 19.
Ukraine insists on continuing the export of grain from key ports after the exit of the aggressor state of Russia from the grain agreement, but insurers and shippers are not so positive, Bloomberg reports. The agency emphasizes that the termination of the agreement by Russia means that it will no longer guarantee safe passage.
“No sane owners will call there uninsured. Without the protection of the safe corridor, the Ukraine trade is dead,” said Vasilis Mouyis, joint managing director of Greece-based Doric Shipbrokers SA, which had previously sent vessels through the shipping passage.
According to Dmitry Skornyakov, chief executive officer of HarvEast Holding, the main task for Ukraine now is to get the support of Turkey, which could provide military support for ships entering and leaving the ports of Ukraine. However, such a move would be very risky for Turkey, so the country is unlikely to intervene, according to a knowledgeable official. Turkey will not jeopardize its naval ships to help ships from Ukraine, instead focusing on restarting a deal involving Russia.
Paul Markides, marine quality manager at Intercargo, a global trade association for dry-bulk shipowners, said shipowners will not call at Ukrainian ports until the corridors are restored because it is dangerous, Bloomberg reports.
As Ukrainian News Agency earlier reported, on July 17, Russia announced the withdrawal of guarantees for the safety of shipping in the Black Sea to provide a "grain corridor."
On July 17, President Volodymyr Zelenskyy called on the UN and Turkey to continue implementing the "grain agreement" without Russia.
At the same time, the Office of the President of Ukraine proposed to organize military patrols of routes that carry out a "grain agreement."
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