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Exclusive-Ukraine port of Odesa not operating after Russian drone attack on energy facilities

By Pavel Polityuk KYIV (Reuters) - The Ukrainian port of Odesa was not operating on Sunday after the latest Russian attack on the region's energy system, Agriculture Minister...
Exclusive-Ukraine port of Odesa not operating after Russian drone attack on energy facilities © Reuters. FILE PHOTO: A view shows a grain terminal in the sea port in Odesa after restarting grain export, as Russia's attack on Ukraine continues, Ukraine August 19, 2022. REUTERS/Valentyn Ogirenko/File Photo

By Pavel Polityuk

KYIV (Reuters) - The Ukrainian port of Odesa was not operating on Sunday after the latest Russian attack on the region's energy system, Agriculture Minister Mykola Solsky said, but added that grains traders were not expected to suspend exports.

Two other ports - Chornomorsk and Pivdennyi - authorised to export grains from Ukraine under a deal between Russia and Ukraine were partially operating, he said.

"Chornomorsk port is now operating at about 80% of capacity," Solsky told Reuters in a phone call.

More than 1.5 million people in the southern Odesa region were without power after Russian drone strikes hit two energy facilities, Ukrainian President Volodymyr Zelenskiy said in a video address late on Saturday.

Solsky said that Odesa port was not operating at the moment because the power generators had not been switched on yet. Grains traders continued to ship grains via the two other ports, he said.

"There are problems, but none of the traders are talking about any suspension of shipments. Ports use alternative energy sources," Solsky said.

Since October, Moscow has been targeting Ukraine's energy infrastructure with large waves of missile and drone strikes.

Odesa regional authorities said electricity for the city's population will be restored "in the coming days," while complete restoration of the networks may take two to three months.

Ukraine is among the world's largest producers and exporters of corn and wheat but its exports have fallen significantly due to the Russian invasion.

After an almost six-month blockade caused by the invasion, the three Black Sea ports in the Odesa region were unblocked at the end of July under the deal between Moscow and Kyiv brokered by the United Nations and Turkey.

Kyiv had separately sought to have the agreement expanded to include more ports, but that has not been concluded so far.

The three ports involved in the deal - Odesa, Chornomorsk and Pivdennyi - have the combined capacity to ship around three million tonnes of grains a month.

Ukraine wanted to include the ports of the southern Mykolaiv region, which shipped 35% of Ukrainian food exports before Russia's invasion.

Mykolaiv was Ukraine's second-largest grain terminal according to 2021 shipment data, so its addition would allow for a much larger volume of grains and oilseeds to be exported.

Grain exports from Ukraine in the first eight days of December fell 47.6% from a year earlier to 1.09 million tonnes, agriculture ministry data showed.

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01-05-2024 10:45:17 (UTC+7)

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 EUR/USD1.0658↑ Sell
 GBP/USD1.2475↑ Sell
 USD/JPY157.91↑ Buy
 AUD/USD0.6469Neutral
 USD/CAD1.3780↑ Buy
 EUR/JPY168.32↑ Buy
 EUR/CHF0.9808Neutral
 Gold2,295.80↑ Sell
 Silver26.677↑ Sell
 Copper4.5305↑ Buy
 Crude Oil WTI81.14↑ Sell
 Brent Oil85.62↑ Sell
 Natural Gas1.946↑ Sell
 US Coffee C213.73↑ Sell
 Euro Stoxx 504,920.55↑ Sell
 S&P 5005,035.69↑ Sell
 DAX17,921.95↑ Sell
 FTSE 1008,144.13Sell
 Hang Seng17,763.03↑ Sell
 Small Cap 20001,973.05↑ Sell
 IBEX 3510,854.40Neutral
 BASF49.155↑ Sell
 Bayer27.35↑ Sell
 Allianz266.60↑ Sell
 Adidas226.40↑ Sell
 Lufthansa6.714Neutral
 Siemens AG175.90↑ Sell
 Deutsche Bank AG15.010Neutral
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