There's no alternative for Ukrainian agricultural sector other than restoring exports via seaports - expert

MOSCOW. April 19 (Interfax) - Ukraine will not be able within the next two or three years to complete the construction of facilities on its borders for storing and transshipping agricultural products, including grain, to ensure export potential similar to ports', Ukrainian Grain Association President Nikolai Gorbachev said.

"Everyone engaged in the grain business has seen over these two years that we have managed to achieve a figure such as 1.1 million tonnes of grain and oilseed exports by rail. That was our record in November 2023. After that, we shipped amounts smaller than 1 million tonnes. But today it is around 600,000 tonnes that we ship by rail," Ukrainian media quoted Gorbachev as saying in a statement.

The largest monthly amount of exports transported by road is 600,000 tonnes, he said.

These two components of Ukraine's agricultural exports during the crisis - railways and road transport - allowed Ukraine to export 1.7 million tonnes of grain and oilseeds to world markets in the months that saw record shipments, he said.

Meanwhile, Kiev-controlled Ukrainian ports ensure the export of 7 million tonnes of agricultural products a month.

Exports via Danube ports have increased from 100,000 tonnes to 2.5 million tonnes a month due to proper coordination with Romanian businesses and officials, Gorbachev said, adding that this figure could grow by a further 500,000 tonnes.

"However, this still will not be the same as 7 million tonnes. There are still very high freight charges and dependence on neighboring states," he said.

When commenting on the prospect for exporting Ukrainian grain by barges from the Dnieper to the Danube, Gorbachev said that not all barges could do so due to the need to sign a joint permission for the use of waterways.

"Our agricultural model that exists today needs ports. There is no other alternative [...] We export 7 million tonnes through three Greater Odessa ports: Yuzhny, Odessa and Chernomorsk. There are also 11 grain terminals in Nikolayev. We will easily add 2.5 million-3 million tonnes and will be able to start shipping even more than we produce," he said.