Ukraine Signals Plans for Grain-Export Test Run on Friday

Áine Quinn, Salma El Wardany and Volodymyr Verbyany, Bloomberg News

Grains of harvested wheat in a storage barn in Polykastro, Greece, on Friday, July 1, 2022. Global food prices surged to a record after Russia’s Feb. 24 invasion disrupted exports of grain and vegetable oil through Ukraine’s Black Sea ports, adding to cost pressures from logistics snarl-ups and a rebound in consumer demand after the coronavirus pandemic. Photographer: Konstantinos Tsakalidis/Bloomberg , Bloomberg

(Bloomberg) -- Ukraine’s Sea Ports Authority told companies that a small test boat would sail on Friday, according to a local terminal operator, in a potentially encouraging sign that grain shipments are closer to restarting.

Crop traders are watching closely for tangible progress toward unlocking the millions of tons of grain that have been piling up in Ukraine since ports were closed following Russia’s invasion in February. It’s been a week since the two sides signed a landmark deal to restart shipments, but there are few details about how and when the shipments are likely to start.

Read: Ukraine Grain Challenge: Evade Mines, Find Ships and Trust Putin

The Sea Ports Authority told companies at a meeting on Thursday that a small test boat would sail today, said Shota Khajishvili, the co-founder of Risoil, which operates a terminal at Chornomorsk port. Khajishvili said he had two ships ready that he was hoping could sail on Saturday if the test run goes to plan. A trader who has a shipment waiting to depart at the same port said separately they had also been notified about Friday’s test, while asking not to be identified discussing private dealings.

Both Ukraine’s sea port administration and Infrastructure Ministry didn’t immediately reply to requests for comment. Ukraine’s military authorities declined to comment.

A spokesperson for President Volodymyr Zelenskiy said it’s unclear whether any ships will sail on Friday, but that the “process has started.”

A successful resumption of grain and oilseed shipments from Ukraine is seen as key to easing a global food crisis, but many analysts and western officials have been skeptical about whether last week’s deal can be implemented. Shipowners are facing a myriad of challenges including getting insurance and recruiting crews to operate the ships as safety concerns remain. Russia’s attack on Odesa’s sea port with cruise missiles hours after signing the deal also raised questions about its commitment.

A group of G-7 ambassadors to Ukraine and their Turkish colleague were in Odesa Friday, the U.K Ambassador to Ukraine Melinda Simmons said in a tweet.