Ukrainian grain exports are under threat due to the crisis in the Red Sea

Due to the constant attacks by Yemeni Houthis in the Red Sea, grain carriers are increasingly diverted from the Suez Canal-Red Sea route. For Ukrainian grain exports, such events could be a crisis, as almost a third of Ukraine’s maritime exports go through the Red Sea to China, Reuters writes.

The agency notes that Ukraine has managed to increase its Black Sea grain exports to levels not seen since before Russia’s invasion, although the Red Sea shipping crisis poses a new challenge to its important agricultural trade.

Kyiv’s success in replacing the UN-backed Black Sea export agreement with its own shipping scheme has brought relief to Ukrainian farmers and importing countries. In December, Ukraine shipped about 4.8 million metric tons of food, mostly grain, from its Black Sea ports, exceeding for the first time the volumes achieved under the previous UN-led corridor.

Passage through the Red Sea is very important for Ukraine, as almost a third of its exports go to China.

According to Oleksandr Karavaitsev, senior economist at the International Grains Council, the new export scheme also sees Ukraine shipping grain to Pakistan, for the first time since Russia’s invasion. According to analysts and traders, grain carriers are increasingly being diverted from the Suez Canal to the Red Sea route.

“The situation in the Red Sea is likely to hamper long-distance transportation from Ukraine,” Karavaitsev said.

“In my opinion, the total volume of sea shipments from Ukraine will continue to grow,” a European trader said, noting that last week Ukrainian corn was sold to China despite the risks associated with the Red Sea, Reuters reports.

The Houthis are one of several groups in the Iranian-aligned “Axis of Resistance” that have attacked Israeli and American targets since their Palestinian ally Hamas attacked Israel. The Houthi strikes threaten merchant ships, which could affect the entire world.

Tags: export, grain, Yemen, war, Ukraine