Business news from Ukraine

Exports via Ukrainian sea corridor reached 33.8 mln tons – Kubrakov

Since August 2023, the maritime corridor across the Danube created by the Ukrainian Navy has exported almost 33.8 million tons of cargo, which exceeds the performance indicators of the “grain initiative,” said Oleksandr Kubrakov, Deputy Prime Minister for Reconstruction of Ukraine, Minister of Communities, Territories and Infrastructure Development (Ministry of Reconstruction).

“Over 7 months, 33.8 million tons of goods were exported through the Ukrainian corridor. This exceeds the volume of exports for the whole year of the Grain Initiative,” he wrote on the social network X.

It is specified that 1.14 thousand vessels were sent from the ports of Greater Odesa to 40 countries.

Of the 33.8 million tons of cargo transported through the Ukrainian sea corridor, 23.1 million tons were the products of Ukrainian farmers. At the same time, 33 million tons of agricultural products were exported during the year of the Grain Initiative, Kubrakov noted.

According to the Ministry of Reconstruction, in January 2024, the volume of agricultural exports through the corridor amounted to 3.4 million tons, with a total export volume of 7.8 million tons, including other cargoes, in February – 2.7 million tons with a total of 8 million tons of cargo delivered abroad, in March – 2.1 million tons with 6.3 million tons, respectively.

According to Kubrakov, 150 vessels are currently waiting to approach the ports of Odesa, Chornomorsk and Pivdennyi, which are expected to export almost 5 million tons of cargo.

“We can say that we have reached almost pre-war export volumes from the ports of Greater Odesa, and we have introduced a much more efficient logistics route without the participation of the aggressor state, while continuing to be a guarantor of the world’s food security. This is another joint victory of the state, the Joint Defense Forces and the entire maritime infrastructure industry,” he wrote on Facebook.

Earlier it was reported that in February, exports from Ukraine via the sea corridor reached a record 8 million tons. In mid-March, Deputy Minister of Communities, Territories and Infrastructure Development Yuriy Vaskov said that more than 1,000 vessels had sailed through the Ukrainian sea corridor since its launch, transporting almost 31 million tons.

After obtaining the necessary permits from the Ukrainian Navy, the corridor began operating around the clock.


Unity Facility insurance mechanism for grain transportation by Ukrainian sea corridor extended to all cargoes

The Unity Facility insurance mechanism for grain transportation by Ukrainian sea corridor, announced in mid-November 2023, has been extended to ships carrying not only grain but any other cargoes from February 2024, Oliver Wyman partner Crispin Ellison said.

“By combining the efforts of the industry and the government, we’ve been able to create a mechanism (facility) where prices are well under half of those in the normal commercial market. And now, this month, February, we’ve expanded that facility to include transportation of all cargoes, not just grain,” he said at a Wednesday webinar on political risk insurance organized by the U.S.-Ukraine Business Council (USUBC) and the U.S. Department of Commerce.

He said this will be formally announced on Friday, but the option is already available and effectively triples the mechanism.

Ellison recalled that after Russia withdrew from the Black Sea Grain Initiative, insurance rates increased for the military risk element alone to about 5%, which was completely unaffordable and led to a halt in shipping in July and August.

Established using a public-private partnership (PPP) in which the Ukrainian government provided a $20 million reimbursement fund, the Unity Facility insures approximately 1,000 vessels per year with a maximum insured value of $50 million for each vessel, supporting the export of approximately 30 million tons of grain. The reimbursement fund is accessed through a letter of credit with Ukrainian banks and DZ Bank.

According to Ellison’s submission, a parallel mechanism for cargo coverage, supported by EBRD financing for the Ukrainian government, is being considered.

The expert emphasized that the relatively small amount of insurance capital allowed exporting goods worth about $20 billion, and its estimate is 6-8% of Ukraine’s GDP.

As reported, the Unity Facility was created with the support of the UK government, international reinsurance broker Marsh McLennan and over a dozen more British insurance companies.

According to the Ministry of Restoration, the sea corridor created by the Navy of the AFU and the Danube since August 2023 provided for the export of almost 26 million tons of cargo, of which more than 18 million tons – the products of Ukrainian agrarians. It was specified that from the ports of “Greater Odessa” 854 ships were sent to 42 countries.

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Exports via the Ukrainian sea corridor reached 22 mln tons

Since August 2023, the sea corridor created by the Ukrainian Navy has exported almost 22 million tons of products, and the volume can be increased by another quarter, said Oleksandr Kubrakov, Vice Prime Minister for Reconstruction of Ukraine, following his visits to the Black Sea ports.

“More than 22 million tons of cargo of various types have been exported since the start of the temporary corridor through the Black Sea, which is known worldwide as the Ukrainian Corridor. More than 700 vessels have used it since August,” Kubrakov wrote on Facebook on Saturday.

The deputy prime minister noted that transshipment is carried out from three ports of Greater Odesa – Chornomorsk, Odesa and Pivdennyi. On Saturday night, they were once again attacked by Russian drones. “Unfortunately, we have damaged the transshipment infrastructure and destroyed grain,” Kubrakov said.

According to him, since July 18 (the last day of the grain corridor), Russian attacks on Ukrainian seaports have damaged almost 200 port infrastructure facilities and injured more than 26 civilians.

“At the same time, port workers are recovering quite quickly. Today I saw it with my own eyes. Moreover, they are increasing transshipment volumes every day. This, as well as the prospects for their operation, were discussed at meetings in three key ports of Ukraine,” the Vice Prime Minister said.

He noted that more than 22 million tons in six months is not the limit. Modernization of both the ports themselves and the accompanying infrastructure, such as the road and rail networks, with proper security, will increase the volume by at least a quarter, Kubrakov assured. He announced on February 3 that exports via the new sea corridor had reached almost 20 million tons. According to him, 661 vessels left the ports then.


Ukrainian ports exported 56.3 mln tons of cargo, including 18 mln tons via sea corridor

In 2023, Ukraine’s ports handled 62 million tons, including 56.3 million tons for export, the Ukrainian Sea Ports Authority (USPA) reported on Facebook on Wednesday.

According to the administration, imports amounted to 5.3 million tons. At the same time, the Ukrainian sea corridor has already exported 18 million tons of cargo to 32 countries, 12.7 million tons of which are agricultural products.

“By the end of 2023, about 62 million tons of cargo were transshipped by Ukrainian ports in wartime. Among the leaders in terms of cargo nomenclature are grains – 45.5 million tons and liquid bulk – 6.3 million tons. An undoubted achievement of 2023 was the launch of the temporary sea corridor announced by the Ukrainian Navy, which made it possible to unblock the ports of Greater Odesa. On August 16, 2023, the first vessel used the temporary corridor. According to the results of 2023, 400 vessels exported 12.8 million tons of cargo,” the statement said.

Last year, the Danube ports transshipped 32 million tons of cargo, which exceeds the record figures of 2022, the USPA said in a statement.

The cargo turnover of the port of Izmail more than doubled and reached 20.2 million tons (in 2022 – 8.8 million tons). The cargo turnover of the port of Reni reached 10 million tons (6.8 million tons), and that of the port of Ust-Dunaisk – 1.7 million tons (785 thousand tons).

The cargo turnover of the port of Odesa also increased and reached 8.41 million tons (7.69 million tons in 2022), while the cargo turnover of the port of Pivdennyi decreased to 10.08 million tons (15.28 million tons), and the port of Chornomorsk – 11.41 million tons (11.76 million tons).

“I am very grateful to the business, the team of the Ministry of Development (Communities, Infrastructure Territories) and the employees of USPA for effective cooperation, which has led to a number of technical and technological measures: 23 transshipment points have been launched and 15 investment projects are being implemented, which all helped to achieve such record-breaking results. Despite the fact that a lot has already been done, in 2024 we will continue to work together to further increase cargo turnover and improve the work of the Danube cluster ports,” Yuriy Lytvyn, Head of USPA, was quoted as saying in the statement.

Earlier it was reported that the new Ukrainian sea corridor created by the Ukrainian Navy in August 2023 ensured the export of almost 15 million tons of products, including 10 million tons of agricultural products.

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