"NIBULON" sharply reduced grain exports due to port blockade

"NIBULON" in July was able to export only 60 thousand tons of grain out of about 250 thousand tons contracted because of the blockade of Ukrainian seaports. The company shipped only two vessels instead of the planned volume.

This is reported by Delo.ua from

a reference to an interview with the company owner Andriy Vadatursky for Forbes.

According to the owner and CEO of NIBULON, Andriy

Vadatursky, the company’s July export program was built on

shipments through the ports of Odesa.

Before the blockade the company invested about $25 million in developing

infrastructure on the Danube. After the maritime corridor resumed operations, this

alternative route was effectively no longer used actively.

Vadatursky believes that alternative export routes

need to be maintained even after the seaports resume operations. Among

possible mechanisms he named compensation for transport costs and support for

shipments via Ukrzaliznytsia.

At the same time, Vadatursky does not consider the situation critical for

the entire agribusiness sector. In his assessment, provided alternative

logistics are restored and the market stabilizes, the sector can return to profitability within two to three months.

Recall, Russian attacks on civilian ships and port infrastructure have effectively halted traffic to the ports of Greater Odesa. This creates a direct threat to the export of over 30 million tons of Ukrainian agricultural products and to the stability of global food markets.