Ukraine's Grain Shipments Suspended

UN officials announced that they are suspending the movement of bulkers carrying grain tomorrow, November 2, along the Black Sea humanitarian corridor as they continue discussions with Russia, Turkey, and Ukraine to resume full participation in the program. This came after traffic dropped on the route today, November 1, a day after Ukraine set a record for exports but Russia reportedly attacked two civilian tugboats at the port of Ochakiv, Ukraine.

“The Joint Coordination Center can best deliver on its mandate with the full and active participation of all four delegations,” the UN said in response to the Russian Federation suspending its participation in the JCC’s efforts and publicly saying that the safety of vessels operating on the route could not be guaranteed. Russian officials accused Ukraine and the west of using the vessels for military purposes.

UN officials were quick to refute Russia’s claims that the corridor is being used for military purposes or transporting equipment. Each vessel is inspected at Istanbul before being permitted to proceed across the Black Sea and again on their return from Ukraine. Martin Griffiths head of the UN’s humanitarian efforts told the Security Council that no vessels were in the corridor at the time of the attacks last weekend on Russian forces in occupied Crimea. Russia claimed that the drones came from civilian ships sailing along the corridor.

The UN Secretariat however said that the movements and inspections carried out are temporary and an extraordinary measure since the Russian withdrawal from the agreement. The UN Coordinator for the Black Sea Grain Initiative, Amir Abdulla, in close cooperation and consultation with the Turkish delegation at the JCC, is reportedly “exerting all efforts to resume full participation at the JCC.” Late today, Abdulla Tweeted a brief message saying that he expects “loaded ships to sail on Thursday.”

Reports from the maritime industry said that some insurers have stopped writing future policies waiting to see the outcome of the current efforts. Officials with the JCC had earlier said that as many as 100 vessels were registered and waiting for inspections.

“Ukraine for its part continues to fulfill its obligations and remains the guarantor of food security for the entire civilized world,” Ukraine’s Ministry of Infrastructure wrote on its social media. They also asserted that export volumes could be 30 to 40 percent higher if Russia was not interfering with the inspections in the Bosporus.

Only three vessels however departed Ukraine today before movements were suspended. Two of the vessels are carrying wheat for Libya and sunflower oil for Morocco while the third is carrying corn bound for Germany. Ukrainian officials said that two tankers arrived in their ports to load oils for Jordan and Romania. The JCC reported that inspectors also completed 36 inspections on outbound vessels. Two additional inspections were suspended while the vessels’ cargo was fumigated.

The uncertainty is leading to dire predictions of bread lines and hunger according to experts cited by the Financial Times. At the same time, Bloomberg reported that wheat futures traded in Chicago reversed earlier losses rising two percent after the announcement of the November 2 suspension of vessels closing up eight percent so far this week. Wheat futures reached a two-week high in Paris and corn prices were also traded higher.