Ukraine could lose half a billion dollars a month if grain deal goes away
(Baonghean.vn) - Ukraine could lose 500 million USD each month if the grain deal is broken.
Based on data from the United Nations and the Ministry of Agriculture and Customs of Ukraine, Ria Novosti predicts that in the event of a breakdown in the grain deal, Ukraine will lose about $500 million per month.
Thus, from August 2022 to June 2023, Ukraine exported 50.6 million tons of grain, worth $9.8 billion.
The bulk of grain was exported during the Black Sea grain deal. The share of deliveries through ports reached 78%. And in recent months, it has consistently exceeded 80%. The rest 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%, or 28.1 million tons. In terms of revenue, grain exports through ports (such as Izmail, Ust-Dunaysk and Reni) brought in $7.7 billion, through the Black Sea $5.5 billion, and through waterways $2.2 billion.
The Black Sea grain deal was signed in late July 2022 by representatives of Russia, Türkiye, Ukraine and the United Nations. It includes two provisions: a mechanism for Ukrainian grain exports from Black Sea ports; and the removal of restrictions on Russian food and fertilizer exports to world markets.
The deal was initially intended as a way to avoid food crises by directing grain to poor African countries. However, according to Moscow, only a very small proportion of the grain exported from Ukraine under the deal is destined for those countries, while the majority is destined for Europe.
Moscow has repeatedly stressed that the agreement does not apply to Russian products.
Russian President Vladimir Putin said his country is considering suspending its participation in the Black Sea grain deal until export barriers to Russia on food and fertilizer are removed.
