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Russia’s air raids increase food prices and complicate supply chains

Russia has been targeting Ukraine’s ports on the Danube River since July 2023. However, the attacks have intensified and continued through early to mid-August.

On August 2, Russia attacked the Ukrainian river port in the city of Izmail, Ukraine’s Southern Odesa region, which is also near the border with a NATO-member country Romania. Since Russia reimposed the grain-deal blockade in mid-July, Izmail has been a lifeline for Ukrainian shipping.

According to Oleksandr Kubrakov, Ukrainian Minister for Communities, Territories, and Infrastructure Development, the attack has destroyed nearly 40,000 tons of Ukrainian grain, intended for shipment to African countries.

The latest missile strike added to the already turbulent global market and sent food prices soaring. According to the U.N. Food and Agriculture Organization (FAO), “globally-traded food commodities averaged 123.9 points in July, up 1.3 percent from the previous month while 11.8 percent below its July 2022 level.”

On August 16, Russia launched yet another missile strike on the Danube port in Ukraine, as the first cargo vessel “carrying more than 30,000 metric tons of cargo, including food products” was leaving Odesa. Despite the security risks, the ship reached the port in Constanta, Romania. Reuters reported that in the first seven months of 2023, Ukraine has shipped 8.1 million tons of grain through the Romanian Black Sea port of Constanta.

Many world leaders, including the U.N. Secretary-General António Guterres, have called on Russia to rejoin the grain deal, this would help to somewhat restore the global supply change and stop the fast-growing food prices. However, there is no indication from Russia, at least at this stage, that is willing to come back to the deal.

Even though Ukraine can transport some goods through Romania, its most important route was the Danube River port in Izmail. In the meantime, Ukrainian officials are trying to find alternative routes for their products.

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