Miller Magazine Issue: 151 July 2022

26 MILLER / JULY 2022 NEWS Biden said that they are working on a plan to export Ukrainian grain by rail, but there are logistical obstacles in this regard. Ukrainian trains have a wider track gauge than other tracks in Europe. Therefore, grain on trains departing from Ukraine has to be transferred across the Polish border. Biden stated that despite the logistical problems, temporary silos are a good option for now and can help Ukraine save some time. However, the Ukrainian authorities discredit that the railway option will be a real solution. Stating that grain exports cannot be made more than 2 million tons per month via alternative routes such as highways, rivers and railways, Nikolay Gorbachov noted that Ukraine can export 20 million tons of grain next year at best, with- out using the Black Sea ports. Gorbachov reminded that they shipped 44.7 million tons of grain to the world mar- kets last year and added, “No solution can be found for grain exports without access to Black Sea ports.” It is expected that the yield in Ukraine, where 106 mil- lion tons of grain and oilseeds were produced last year, may decrease to 65 million tons this year due to the invasion of Russia. While there is a global food crisis concern, nearly 25 million tons of Ukrainian grain lying idle in silos. Nego- tiations are continuing for the establishment of a grain corridor in the Black Sea with the diplomatic efforts of Turkey in order to transport this grain to the world mar- kets. But the US is skeptical of Moscow, which wants sanctions relief in exchange for a grain corridor. BLACK SEA GRAIN CORRIDOR President of the Ukrainian Grain Association Nikolay Gorbachov, in his speech in London, argued that talks between Turkey and Russia are unlikely to provide the necessary security guarantees for grain shipments. In- stead, he urged the United States, Britain and France to create a security corridor for ships transporting Ukrainian grain out of the country. “I do not believe that any insur- ance company will load grain from Ukraine, even if the Russians sign an agreement with the Turks. Insurance companies do not cover this risk. We need international warranties. Only then can we ship our grain,” Gorbachov said. However, the USA and the EU do not take kindly to such an offer, which would pose the risk of conflict with Russia.