Miller Magazine Issue: 153 September 2022

Russia and Ukraine signed separate accords with the UN and Turkey on 22nd July to reopen Ukraine's Black Sea ports to grain exports, in an effort to ease an international food crisis caused by Russia's invasion of Ukraine. The deal specif- ically allows for significant volumes of commercial food exports from three key Ukrainian ports in the Black Sea – Odessa, Chernomorsk and Yuzhny. The agreement, brokered by Turkey and the United Nations, has been widely praised. In addition to stabilizing global food prices, the agreement could help to alleviate rising food insecurity and global hunger concerns. Much of the grain imported by developing countries comes from Ukraine, but since the invasion, the country’s Black Sea ports have been blockaded by Russia. Ukraine is among the world’s leading grain exporters, supplying more than 45 million tonnes an- nually to the global market. The Russian invasion has sparked record food and fuel prices, as well as supply chain issues, with mountains of grain stuck in silos. However, there is cautious optimism about the deal, several roadblocks ex- ist, namely continuing conflict in and around port infrastructure, the demining of ports and routes, and persistent high logistical costs related to freight and insurance rates. How has the deal affected grain markets? How is the grain export pace via Black Sea ports? What is the grain export prospect for Ukraine in the coming months? How the war has affected Ukrainian grain production? In an exclusive interview with Miller Magazine, Mykola Gorbachov, President of the Ukrainian Grain Association, answered these important questions. Since the first ship left Ukraine under the deal brokered by the United Na- tions and Turkey to unblock Ukrainian sea ports on Aug. 1, Ukraine has exported more than 1.5 million tons of agricultural products through the Black Sea. Mr. Gorbachov told Miller Magazine that the opening of Ukrainian ports for grain export will increase export to about 3-3,5 mmt of grains and oilseeds per month. It’s below the natural pre-war volume of 6-7 mmt export a month. “If we could export either from Mykolayiv port, the largest exporting point during the prewar period, it would add volumes to export,” Gorbachov said. Ukraine tried to export grain through its western border by railway and trucks. However, rail and road transport cannot be an alternative to Black Sea ports. “The experience proved its insolvency as logistics takes too much costs and producers could not survive as they receive prices below their costs,” Gor- bachov underlined. I am sure that you will read with interest Gorbachev's comments on the grain corridor and Ukrainian grain exports. editor Namık Kemal PARLAK millermagazine company/millermagazine millermagazine Parantez Publishing and Congress Ltd. Gökevler Mah. 2312 Sok. No:16/37 Ginza Corner Plaza, Esenyurt / İstanbul - TURKEY T. +90 212 347 31 64 F. +90 212 212 02 04 www.millermagazine.com info@millermagazine.com On Behalf of Parantez Publishing and Congress Ltd., Owner Zübeyde Kavraz Responsible Manager Namık Kemal Parlak Editor-in-Chief Namık Kemal Parlak Editors Mustafa Yağmurlu Cemalettin Kanaş Sales and Marketing Burcu Çetin Hayriye Turan Art Director and Visual Design Özer Duman Corporate Communications Ahmet Hamdi Annaç Consultancy Board Ali İhsan Özkaşıkçı, Chairman of AUSD Mesut Çakmak, Chairman of GUSAD Erhan Özmen, GUSAD Honorary Chairman Bekir Bağış, Chairman of Çukurova Flour Industrialists Association Hasan Özmermer, Board Member of Özmermer Flour Derviş Toprak Mehmet Şerif Gültay Referee and Scientific Advisory Board Prof. Dr. Mustafa Bayram Prof. Gustavo Sosa Prof. Dr. Hazım Özkaya Prof. Dr. Harun Dıraman Asst. Prof. M. Kürşat Demir Asst. Prof. Halef Dizlek Asst. Prof. Mustafa Erbaş Publication Type Periodic (Monthly) Printing - Baskı İhlas Gazetecilik A.Ş. Merkez Mah. 29 Ekim Cad. No: 11 A 41 Yenibosna-Bahçelievler-İstanbul Tel: 0212 454 30 00 All copyrights belong to Parantez Publishing. © May not be used without permission. Responsibility of the ads belongs to the advertisers. ISSN 2718-031X COPYRIGHT PAGE The fate of the Black Sea grain corridor