World waits for Ukrainian grain exports to start movingWritten by Nick Blenkey
As the President of Ukraine, Volodymyr Zelensky, observed the loading of Ukrainian grain onto a bulk carrier at the Chornomorsk Sea Trade Port hopes were high that exports could soon start moving.
“The first vessel, the first ship is being loaded since the beginning of the war,” said President Zelensky. “This is a Turkish vessel. This shows that the port has started working.”
According to President Zelensky, the export of grain will begin with the departure of several ships that were loaded but could not set sail due to the onset of the war.
Ukraine is waiting for appropriate signals from partners — representatives of the UN and Turkey — regarding the start of grain shipments, with the president’s office quoting Zelensky as saying, exports may begin “in the coming days.”
“Our side is fully prepared. We sent all the signals to our partners – the UN and Turkey, and our military guarantees the security situation. The Minister of Infrastructure is in direct contact with the Turkish side and the UN, we are waiting for a signal from them that we can start,” Zelensky said.
One major obstacle to Ukrainian grain exports identified by BIMCO looks to have been removed. The Ascot Group, a London-headquartered specialty risk assumption insurance and reinsurance company, today announced the launch of a Marine Cargo and War facility which will provide coverage for Ukrainian grain and food products transitioning through safe corridors established under the deal brokered by Turkey on July 22.
Placed by Marsh, and led by Ascot, the Lloyd’s facility will provide up to $50 million in all risks marine cargo and war coverage. The facility will allow ships transporting grain, and other designated food products from Ukrainian ports, to have reliable and readily available coverage in place for their export voyages.
Commenting on the facility launch, Chris McGill, head of cargo at Ascot, said: “This bespoke, mission focused facility allows the insurance market to play its part in enabling the vital transportation of grain and food products out of Ukraine to the wider world. Under the terms of the treaty, ships can transit designated Ukrainian ports through safe access corridors. Ascot, and the London market, is delighted to be doing its part to catalyze this humanitarian venture.”
Patrick Tiernan, chief of markets at Lloyd’s, said: “The recovery of these grain supplies is vital to addressing global food insecurity and market uncertainty at this difficult time. The facility announced by our market today is of paramount importance. It will add essential protections to the deal brokered by the UN last week and represents the latest support from Lloyd’s and the insurance industry to help the international community respond to the conflict.”