Ukraine establishes temporary shipping route after Russia pulls out of grain deal Ship’s crew

Reuters

By Jonathan Saul

LONDON, July 19 (Reuters) – Ukraine is establishing a temporary shipping lane to maintain grain supplies after Russia canceled a deal allowing Ukrainian exports through a United Nations-backed Black Sea safe corridor, Kiev said on Wednesday .

Russia attacked Ukraine’s Black Sea port of Odessa slammed into the port on Tuesday for the second straight day after withdrawing from the deal on Monday, which included withdrawing guarantees from Moscow of safe shipping.

In an official July 18 letter submitted to the UN shipping agency, the International Maritime Organization (IMO), Ukraine said on Wednesday it had “decided to establish a recommended sea route temporarily.”

“The goal is to facilitate the unblocking of international shipping in the north-western part of the Black Sea,” Vasyl Shkurakov, acting Minister of Municipalities, Territories and Infrastructure Development of Ukraine, said in the letter.

Ukraine added in the letter that it will establish shipping routes near the waters around Chornomorsk, Odessa and Pivdennyi, the three Ukrainian ports that are part of the corridor and will lead to Romania’s sovereign waters and exclusive maritime economic zone.

Ukrainian President Volodymyr Zelenskyy said the Black Sea Grains Agreement could go ahead without Russia’s involvement and that Ukraine was working on options to meet its food supply commitments.

There are “a number of ideas” to help bring Ukrainian and Russian grain and fertilizers to world markets, the United Nations said on Tuesday.

Ukraine added in the letter to the IMO that it created a “mechanism” to provide charterers, ship operators and owners of ships “guarantees for compensation for damage caused by the armed aggression of the Russian Federation.” became.

It said this would be offered while the merchant ships are in Ukraine’s territorial waters or when these ships are en route to or from the country’s deep-sea ports to transport cargo.

Still, insurers have been unhappy since Russia’s move to pull out of the deal examination their appetite for capping ships to Ukraine.

A cargo insurance facility that covered shipments via the previous corridor contract has been suspended, the policy’s broker said Marsh told Reuters on Tuesday.

Norwegian shipping insurance group DNK, which offers war risk insurance, told Reuters on Wednesday that it is currently unable to insure Ukraine as the grain corridor deal is on hold.

Additional war risk insurance premiums levied upon entry into the Black Sea region must be renewed every seven days.

They already cost thousands of dollars and are expected to rise even as shipowners may be reluctant to allow their ships into a war zone without Russia’s consent. There is also the danger of floating mines.

“In this situation, every underwriter now wants to take responsibility for their own position, their own rates and their own underwriting,” said an insurance industry source.

“It will depend on whether the premium is high enough and the risk is considered bearable.”

(Reporting by Jonathan Saul; Editing by David Evans, William Maclean)

(c) Copyright Thomson Reuters 2023.

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