Ukraine: The important junction of commodity traffic in the Black Sea is blocked
Ukraine
Published Mar 2, 2022
Tridge summary
The Black Sea, one of the main arteries of the commodity movement at the crossroads of Europe and Asia, has become the focus of the world with the conflicts in Ukraine. While the implementation of comprehensive sanctions aimed at isolating Russia from the international financial system and economies continues, the partial stoppage of shipments from the Black Sea, which is an important transit route for global commodity trade, adversely affects raw material prices. There are warnings that the deepening of the crisis between Russia and the West will further increase commodity prices.
Original content
The Black Sea, which is the coast of half a dozen countries; It is vital for many other countries in the trade of energy, steel and agricultural products. Petroleum products ships coming from Russia, Azerbaijan and Kazakhstan and sailing to the world from terminals in the Black Sea are the main energy source of many countries both in the east and west. It supplies tens of millions of tons of grain and vegetable oil annually from its ports in the region, also known as the world's breadbasket. PORTS ARE CLOSED IN UKRAINE However, ports and airspace in Ukraine have been closed. Ukraine's southwestern ports of Odessa, Pivdennyi, Mykolayiv and Chornomorsk account for almost 80 percent of grain exports, according to researcher UkrAgroConsult. Both Russia and Ukraine are countries that have a significant weight in the global grain and vegetable oil trade flow, and commodity prices such as sunflower oil, corn and wheat are expected to rise further in the near term as their ports are ...
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