Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Biden touts grain silos on Ukraine border to help exports; Kyiv wants ports open

Published 06/14/2022, 05:41 PM
Updated 06/14/2022, 08:41 PM
© Reuters. FILE PHOTO: Ukrainian flag is covered with grains in this picture illustration taken May 9, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

By Michelle Nichols

(Reuters) -U.S. President Joe Biden said on Tuesday that temporary silos would be built along the border with Ukraine in a bid to help export more grain and address a growing global food crisis.

Since the Russian invasion and blockade of Ukrainian Black Sea ports, grain shipments have stalled and more than 20 million tonnes are stuck in silos. Ukraine says it faces a shortage of silos for a new crop.

The war is stoking prices for grains, cooking oils, fuel and fertilizer.

Russia and Ukraine account for nearly a third of global wheat supplies. Ukraine is also a major exporter of corn and sunflower oil and Russia a key fertilizer exporter.

"I'm working closely with our European partners to get 20 million tons of grain locked in Ukraine out onto the market to help bring down food prices," Biden told a Philadelphia union convention. "It can't get out through the Black Sea because it'll get blown out of the water."

Since the war started, Ukraine and Russia have laid sea mines. Some 84 foreign ships are stuck in Ukrainian ports - many with grain cargoes onboard.

Biden said Washington was developing a plan to get grain out by rail, but noted Ukrainian track gauges were different from those in Europe, so the grain has to be transferred to different trains at the border.

"So we're going to build silos, temporary silos, on the borders of Ukraine, including in Poland," Biden said.

Grain could be transferred from Ukrainian railway cars into the new silos, and then onto European freight cars to "get it out to the ocean and get it across the world," he said, adding the plan was taking time.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

"This is just one of the possibly useful steps in ensuring food security. But we also need a green corridor for our ports," Andriy Yermak, chief of staff to Ukrainian President Volodymyr Zelenskiy, said in an online post.

Ukraine's agriculture ministry on Tuesday said European countries were considering providing temporary silos to "preserve the harvest and secure future grain supplies".

Ukraine says the best way to get grain exports moving again is through Black Sea shipments.

U.N. Secretary-General Antonio Guterres is trying to broker what he calls a "package deal" to resume Ukrainian Black Sea exports and Russian food and fertilizer exports, which Moscow says had been hit by sanctions. The U.N. has so far described talks with Russia as "constructive."

Latest comments

Hahaha... Grains crisis
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.