Ukraine could lose half a billion dollars a month if the grain deal ends.
(Baonghean.vn) - Ukraine could lose $500 million USD per month if the grain agreement breaks down.
Based on data from the United Nations and the Ukrainian Ministry of Agriculture and Customs, Ria Novosti predicts that, should the grain agreement break down, Ukraine would lose approximately $500 million per month.
Thus, from August 2022 to June 2023, Ukraine exported 50.6 million tons of grain, worth $9.8 billion.
For the most part, grain was exported during the period of the Black Sea Grain Agreement. The proportion of shipments made through ports reached 78%. And in recent months, this figure has consistently exceeded 80%. The remainder was transported by rail, road, and ferry.
Of Ukraine's total grain supply, the amount of grain under the Black Sea Agreement accounts for 55.5%, equivalent to 28.1 million tons. In terms of revenue, grain exports through ports (such as Izmail, Ust-Dunaysk, and Reni) generated $7.7 billion, through the Black Sea $5.5 billion, and via river routes $2.2 billion.
The Black Sea Grain Agreement was signed in late July 2022 by representatives of Russia, Türkiye, Ukraine, and the United Nations. It included two provisions: a mechanism for exporting Ukrainian grain from Black Sea ports; and the removal of restrictions on Russian exports of food and fertilizers to the world market.
The initial agreement was intended as a way to avert a food crisis by directing grain to poorer countries in Africa. However, according to Moscow, only a very small percentage of the grain exported from Ukraine as part of the agreement was shipped to those countries, while the majority went to Europe.
Moscow has repeatedly emphasized that this agreement does not enforce its provisions on Russian products.
Russian President Vladimir Putin announced that the country is considering withdrawing from the Black Sea grain agreement until export barriers to food and fertilizers from Russia are lifted.