Russia may block alternative grain routes – NYT
Russia’s attacks on Ukrainian grain terminals on the Danube in the port of Reni are making it difficult for shipping companies to find alternative routes to export Ukrainian grain, which is putting pressure on food prices, The New York Times reports.
– “This could potentially close this route,” said Alexis Ellender, an analyst at Kpler.
According to him, it was considered safe because of its proximity to Romania, a NATO member.
It could also raise shipping insurance rates and further undermine Ukraine’s ability to export grain.
However, some shipowners may call at Ukrainian ports despite the risks if they receive guarantees from the Turkish and Ukrainian governments, said Yoruk Isik, an analyst at Bosphorus Observer, an Istanbul-based consultancy.
He noted that the Danube was considered a safer option than the Black Sea, but there are limits to the amount of grain that can be exported via the river due to port capacity, fuel shortages and damaged roads.
In addition, to transport the same amount of grain on the Danube as by sea, 20 ships are needed instead of one, the analyst said.
The European Union could provide funding to build new railway lines and facilities to facilitate the flow of goods across the Danube, but this would take years, so in his opinion, the Danube will never replace Ukraine’s Black Sea ports.
