Vessel inspections stalling by russians in grain corridor cost Kernel USD 57 mln

Sabotage of vessel inspections in the grain corridor by russians cost Kernel USD 57 million, Bloomberg writes.

As russians slow down inspections of grain corridor vessels, companies are forced to seek alternative river and land routes, both of which are more expensive.

According to Kernel CEO Ievgen Osypov, it costs the company about USD 5 million a month. In total, this amount is USD 57 million.

"Who loses the most? It's Ukrainian farmers who are working in extremely difficult conditions. Their margins and profitability remain on the decline," Osypov said.

Since signing the grain agreement on July 22, 2022, Kernel has shipped almost 3.3 million tons of grain from Black Sea ports, representing about 10% of the country's total exports under the agreement.

"From September to March, the company shipped 80% of its sunflower oil from Black Sea ports in Odesa region, but since April this share has dropped to 44%, which has led to higher costs," the statement reads.

The Ministry of Defence of Ukraine does not allow vessels to enter the ports of Big Odesa outside the framework of the grain deal, expiring on July 17.