New opportunities "knock on the door" of Ukrainian grain

On August 15, Chairman of the Board of Directors of Latvian Railways Rinalds Plavnieks said that this European Union (EU) member country could start exporting Ukrainian grain through Latvian ports from this fall.

Việc hủy bỏ thỏa thuận sẽ cắt giảm xuất khẩu ngũ cốc của Ukraine từ các cảng của nước này ở biển Đen. Ảnh: Anadolu Agency

Russia has canceled an agreement allowing Ukrainian grain exports via the Black Sea. (Source: Anadolu Agency)

"Right now, an opportunity has appeared with the transportation of Ukrainian grain," Mr. Plavnieks said on Latvian radio.

The head of Latvian railways stressed that about 500 thousand to 1 million tons of Ukrainian grain could be transported through this corridor per year.

Ukraine is a major grain grower and exporter. Its grain output in 2023 is expected to fall to around 46 million tonnes, down from 53 million tonnes in 2022 and from a record 86 million tonnes in 2021.

Kiev consumes only about 17 million tons of grain each season and has to export the rest.

However, since Russia launched a special military operation in Ukraine in February 2022, key seaports have been blocked, affecting exports, forcing Ukrainian producers to adjust their planting plans and switch from cereals to oilseeds, which are more expensive but yield less.

Kiev's grain industry is in trouble after Moscow withdrew from an agreement allowing Ukrainian grain exports from the Black Sea. The country can now only export grain in limited quantities through small ports on the Danube River and across land borders in western Europe.

Last July, Latvia asked the European Commission (EC) to develop a route that would allow Ukrainian grain to reach five ports in the three Baltic states of Latvia, Lithuania and Estonia. These five ports have a combined grain export capacity of up to 25 million tonnes per year.

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