Miller Magazine Issue: 153 September 2022

81 INTERVIEW MILLER / SEPTEMBER 2022 70 mmt of it. Due to the Russian invasion and ports block- ade, Ukraine exported not more than 50 mmt of grains and oilseeds, mostly wheat, corn and barley. A huge amount of grains remained in storages – about 26 mmt. Normally season ending stocks in Ukraine not exceeded 3.5-5 mmt. Ukraine provided food for more than 400 million people worldwide and as I already mentioned is one of the top grain exporters in the world, a really breadbasket of the world. When Russia launched its full-scale invasion of Ukraine blocked the Ukrainian ports, a shortage of grain on the market immediately emerged and prices climbed upward. While prices skyrocketed people in most developing and low-income countries couldn’t afford to buy expensive grains or food. Renewed export of Ukrainian grain gives hope for those many people worldwide who need high-quality and affordable Ukrainian grain to feed them as well as helps UN’s World Food program to help the poorest countries to tackle with hunger. It also gives Ukrainian farmers hope for the future that they will sell their crop, will receive income enough to cover the costs and to carry out a new sowing campaign starting in weeks. ‘IT WILL BE EASIER TO CHARTER SHIPS IN SEPTEMBER’ After the agreement, the first ship carrying grain departed fromOdesa on 1st August. How is the grain export pace since the beginning of August? Can Ukraine ship its grain safely to global markets from Black Sea ports? We couldn’t believe the Russians as they could break an obligation to stake the grain deal at any moment. That’s why the UN and Turkey needed in this deal to somehow guar- antee the deal execution. Starting from 1st August and as of 27th August, 46 vessels departed from Ukrainian ports in Odesa region carrying about 1.04 mmt of grains and oil- seeds. Ukraine grain exports is helping lower food prices on the world market. The World Bank said it does not ex- pect food prices to increase for the rest of the year. Has the deal helped to reduce shipping rates and high in- surance premiums? Can the customers source cargoes from Ukraine and find large vessels? As you may know, the cost of delivery through ports is much cheaper compared to rail or trucks. Insurance pre- miums always depend on percentage ratios of incidents; therefore, as long as the grain corridor operates without accidents, premiums will decrease. It is still difficult to find ships for Ukrainian ports, but more and more ship-owners see the promising perspec- tives of the grain corridor and submit ships for loading in Ukrainian ports. I hope that it will be easier to charter the ship in September.