Russia-Ukraine War | Ukraine’s Grain Exports Declining; Minister Warns Of ‘dramatic Impact’ On Global Market

Ukraine accounts for 10% of the wheat production in the world; however, due to the Russian aggression, the export has reduced to one-tenth.

Amid the COVID-19 pandemic, the ongoing war has made it even more formidable for Ukraine to export its agricultural products, said Ukraine’s agriculture minister, Mykola Solskyi said on Saturday. The minister warned that the situation is having a ‘dramatic’ impact on global markets. According to a report by The New York Times, Ukraine accounts for 10% of the wheat production in the world; however, due to the Russian aggression, the export of the cereal grain, a worldwide staple food, has reduced to one-tenth. The report said the war has cut off some international shipments of wheat, resulting in soaring prices globally.

Notably, former agriculture minister Roman Leshchenko had submitted his resignation on Thursday, March 24 and gave no reason for his decision. Later, President Volodymyr Zelenskyy-led’s government voted to approve the appointment of senior lawmaker Mykola Solskyi to replace Leshchenko. Meanwhile, the incumbent minister, in a televised address, said that the Russian forces were now targetting the stocks of grains, resulting in the country shifting many of its stock to some other places. The same was also echoed by Zelenskyy while addressing Italy’s parliament on Tuesday. He told the parliament that a famine-like situation could hit the war-torn country.

A decline in Ukraine’s grain shipments

Contrary to what Zelenskyy had said in the Italian Parliament, former Ukraine’s Agriculture Minister minister took to Facebook and wrote, “We have food supplies for the next two years. We do everything to ensure that the agrarians are provided with the most necessary – equipment, equipment, fertilizers, seeds.” “We have passed a number of necessary legal acts, removed bureaucratic barriers so that there are no defects in the village of production,” added the ex-minister. It is worth mentioning that Ukraine and Russia account for more than 25% of the world’s wheat export, and the ongoing conflict has severely affected the supply chain in Europe. The NYT report claimed the wheat futures on the Chicago Board of Trade rose 5.43% on Thursday, while the cost of vegetable oil and corn have also soared tremendously since the Russian President directed his forces to start a military operation against Kyiv.