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European Business Association appeals to UN and Turkish Embassy in Ukraine to facilitate Grain Initiative extension
12 October 2022, 09:12
Ukrainian business appeals to the UN to spare no effort to extend the Grain Initiative and to include Mykolaiv Commercial Sea Port in the list of transport hubs involved in it.
"The European Business Association appealed to the United Nations and Embassy of the Republic of Turkey to Ukraine to do everything in power to facilitate the prolongation of the Grain Initiative including the Mykolaiv seaport hub, as well as the increase of the number of inspections of vessels with Ukrainian agricultural commodities," the association's appeal reads.
The EBA points that today there are certain logistical constraints in the ports of Big Odesa. In particular, in early October, the number of inspections of vessels loaded with Ukrainian agricultural products by the Joint Coordination Center decreased to 15 per day. According to experts, this will lead to a reduction in the workload and increase the downtime of vessels, hence the costs of shipowners and grain exporters. This, in turn, will affect the prices of Ukrainian agri-food commodities.
Analysts estimate that at least 25 inspections of vessels per day are enough to successfully pass all stages of the Grain Initiative.
READ MORE: Ismini Palla: UN Unaware of Plans for Vessel Inspection Cuts in Black Sea Grain Initiative
Besides, market participants are concerned that given the current delay in inspections, many vessels may be stuck in the Bosporus pending this inspection, which may not be done at all if the Grain Initiative is not extended.
The association also urges to include the Mykolaiv seaport hub, a leading Ukrainian export hub, to enhance export capacities and expand the geography of the Grain Initiative.
Maritime ports of Ukraine were blocked by russia since February 24, 2022, the day this country started a full-scale war against Ukraine until on 22 July a grain deal was signed in Turkey.
