The Ukrainian Agribusiness Club Association (UCAB) has appealed to the Prime Minister of Ukraine with a call to take urgent measures to safeguard Ukrainian exporters amidst a severe escalation of the security situation in the Black Sea waters.
This was reported by the association’s press service.
“As a consequence of Russia’s recent large-scale attacks on seaports and civilian vessels, grain exports through the ports have virtually ceased. Some shipowners are refusing to enter Ukrainian ports and dock for loading, while the existing mechanisms for insuring war risks and compensating for losses for shipowners, agricultural, and logistics companies are insufficient to ensure stable exports. This jeopardizes the fulfillment of international contracts by Ukrainian exporters,” emphasized the experts.
Given the critical importance of maritime exports for Ukraine’s economy, UCAB proposes that the government:
- Promptly implement a convention for loading wagons towards the ports to prevent wagon congestion and shortages, and to officially announce the temporary inability to export, thereby protecting exporters from penalties for non-fulfillment of contracts.
- Instruct JSC “Ukrzaliznytsia” to develop a plan for restoring alternative export routes via the western border, with the potential to increase the throughput capacity of dry ports and border crossings.
- Explore the possibility of resuming navigation through the Danube River with the involvement of the “Administration of Seaports of Ukraine” and the Odesa Regional State Administration.
- Consider recapitalizing the Export Credit Agency to expand the program for compensation of damages from hostilities.
- Introduce war risk coverage mechanisms for insurance companies that insure vessels entering Ukrainian seaports.
- Initiate negotiations with Western partners to coordinate transit and the utilization of neighboring countries’ railway infrastructure.
- Appeal to the EU for support in developing “Solidarity Lanes” to prevent a shortage of agricultural products on global markets and for an urgent, ad-hoc increase in quotas for products within the existing DCFTA (deep and comprehensive free trade agreement).
“Maritime exports remain a key channel for supplying Ukrainian agricultural products to global markets. Therefore, the state’s prompt decisions are critically important for maintaining the trust of international partners, minimizing business losses, and ensuring export continuity. UCAB anticipates a swift government response and is ready to contribute to developing the necessary solutions,” concluded the association.