Stopping sea exports from Ukraine will hit the poorest countries

12 ships with grain left Ukrainian ports while Russia announced the suspension of the grain corridor. Economic expert and ex-deputy Tetyana Ostrikova said this on her Facebook page.

She noted that the Joint Coordination Center can conclude that the vessels are civilian even without the Russians. And they cannot be fired upon.

“In September, when the corridor was operating at its highest capacity, Ukraine received $1.8 billion from sea exports of grain. From August 1 to October 27, Ukraine sold 9 million tons, which is 60% of last year’s export for the same period,” the expert states.

Ostrikova emphasized that the majority of ships with Ukrainian grain should go to Spain, Turkey, Italy, China, the Netherlands and Egypt.

“But if the corridor is stopped, it will not be Europe that will suffer first, but the poorest countries. After all, the grain market is global. A reduction in supply will lead to an increase in world prices, and the market will find equilibrium by itself. This balance means that some countries simply will not buy food at increased prices,” she explained.

And she added that world prices instantly react to events in Ukraine. During the invasion in February, the price of wheat rose from $8 a bushel to $12 in a few days. And since the beginning of June, when the first news about the negotiations regarding the grain corridor appeared, the price has been falling to $8.2 in July. And during the operation of the corridor, it did not rise above $10. The situation with the cost of corn is similar.

“It is this drop in prices that is the contribution of Ukraine and the grain corridor to preventing hunger in the poorest countries, where every cent of the cost of bread is important,” the expert concluded.

Tags: Ukraine, export, grain