Ukrainian exports must continue – Oleksandr Eismont

Alexander Eismont, head of Euroterminal, says that food exports are the main logistics direction.

Almost three months have passed since the signing of the so-called grain agreements. Against the background of justified skepticism towards them, the agreements are really working. According to Oleksandr Eismont, Ukraine has successfully realized all its potential in this, which is a huge result for our economy.

Since August 2022, the resumption of agricultural supplies has actually reanimated the world market. And if we recall the situation in mid-summer, it is worth noting the rise in prices and the destabilization of the domestic political situation in importing countries. At that time, ships for export could not leave Odessa. And this practically created a collapse and a food crisis.

At the same time, the efforts of Ukrainian diplomats who reached such an agreement and guarantees of implementation saved not only Ukraine from the global crisis. We must remember this.

By mid-year, more than 252 ships had passed through the grain corridor. They were headed to importers in Europe, Asia, and Africa. For comparison, nearly 4 million tons of food were exported last month. If you look at it monthly, this is almost a pre-war figure. At the same time, it is worth noting that this year's harvest is already being exported. Therefore, the problem of grain storage is being partially solved.

120 days of the agreement are ending – Oleksandr Eismont

This important grain agreement expires in November. Recall that it was signed in Istanbul on July 22. Will it be extended?

For this, it is worth noting that there are many claims from Russia regarding its implementation. However, this does not even surprise anyone. In this case, one must be prepared for any new turn of events.

At the time of signing the agreement, Oleksandr Eismont recalls, they planned to export about 3 million tons via sea corridors. As a result, they were able to exceed this figure a month later and exported 25% more than expected for the entire month of September. Currently, it is necessary to be active and guarantee alternative access to the market.

Such a situation will make it possible to remove dependence on the Russian position on this issue. After all, we currently remain hostages of a situation in which Ukraine is being imposed on its own unfavorable conditions.

What do you need to do to export and save? – Eismont Oleksandr

Before exports suddenly disappear, we need to develop a plan B. The development of land logistics highways and the diversification of exports are key tasks for the Ukrainian economy in the future.

Oleksandr Eismont believes that it is necessary to create a large network of logistics export hubs and land corridors capable of handling the required volume of cargo. This has the potential to form a more flexible system of supplies to foreign trade markets and ensure the flow of billions of dollars into the economy in the form of export revenue.

It is such hubs that will become attractive for investment for domestic and Western capital. And also because the geography of construction should be directed precisely to the safe western regions of Ukraine, adds Oleksandr Eismont.