Traffic through the temporary grain corridor in the Black Sea may continue. Ukraine is working on ship insurance

Author:
Anna Kholodnova
Date:

Ukraine is considering further use of the temporary transport corridor for grain shipments after the Hong Kong-flagged civilian vessel Joseph Schulte used it for the first time last week.

Reuters writes about it.

Ukraine on August 10 announced a "humanitarian corridor" in the Black Sea to free cargo ships trapped in ports after the termination of the main grain export agreement. However, Moscow has not said whether it will respect the shipping corridor, and shipping and insurance sources have raised security concerns.

"So far, only one commercial vessel has passed, and it has shown willingness to take alternative routes. Then there should be the movement of potentially 7-8 more ships... Then, perhaps, in the future, these alternative routes will become a corridor for the movement of ships heading with loads of grain and oilseeds," said the Deputy Chairman of the All-Ukrainian Agrarian Council Denys Marchuk.

The Deputy Minister of Economy of Ukraine Oleksandr Hryban told the Financial Times that Kyiv, together with global insurers, is working on a scheme to cover the risks of grain ships heading to Black Sea ports and back. According to Marchuk, Ukraine has already allocated 20 billion hryvnias ($547 million) for ship insurance.