The recent Russian drone attacks on the Ukrainian ports on the Danube River will have an impact on the Moldovan grain market as well. The transited volume will increase, but so will waiting times for carriers. To avoid overburdening the Giurgiulesti Port, the Moldovan authorities are looking to increase rail options for Ukrainian grain transit, reports Radio Europa Liberă.
Ukrainian grain arrives in Moldova by land, through the shared border with Ukraine, including by rail via the Basarabeasca-Berezino section, which was rebuilt in the summer of 2022. Then the grain transiting Moldova is delivered to the EU market through the Giurgiulesti Port and the customs points on the border with Romania.
Solutions to facilitate Ukrainian grain transit are discussed by the Moldovan Ministry of Agriculture with colleagues from Ukraine and agencies in five EU countries – Romania, Poland, Bulgaria, Hungary and Slovakia, through the European Commission’s grain crisis platform, among other forums.
“We are telling them about the situation in Moldova, including as a result of the grain transit and the import of small quantities. Even if they are considered small quantities, for us they are rather large quantities”, Vasile Şarban, state secretary of the Ministry of Agriculture, told Radio Europa Liberă.
He added that the Moldovan authorities are discussing measures to urgently facilitate Ukrainian grain transit by rail so as to unclog operations at the Giurgiulesti Port and other land traffic. “This would normally redirect the flow of grain to the Reni Port, but events change from day to day. We saw the attacks on the Danube port infrastructure, meaning whatever we do, our plans cannot be long-term and the solutions are subject to certain risks”, said Şarban.
Maxim Sârbu, department head at the Ministry of Agriculture, told Free Europe that from June 1 to July 20, about 43,300 tonnes of Ukrainain grain transited Moldova. But with the recent attacks on the Ukrainian infrastructure on the Danube, transit volumes are expected to surge, stretching waiting times for carriers.
Igor Tagadiuc, president of the Agrocereale association of importers and exporters, also thinks the latest developments will impact the Moldovan grain market. “Obviously, the flow of Ukrainian grain will increase on the western side, starting with Poland and ending with the Republic of Moldova. Giurgiulesti is overloaded. The flow is very high both on our side and on the Ukrainian side. Something must be done there to streamline operations, because there is a total blockage there and this increases our costs, including logistics and transportation costs, and this is reflected in the retail prices”, said Tagadiuc.
A UNCDAT study shows that before the war the ports of Reni and Ismail on the Danube had shares of 4% and 2% respectively in the traffic of goods and ships, and after the outbreak of the conflict they reached 33% and 28% respectively.
