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Main War — Successful strikes on Russian ships have created conditions for the unblocking of Ukraine's ports.

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Successful strikes on Russian ships have created conditions for the unblocking of Ukraine's ports.

08 Aug, 2023
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Successful strikes on Russian ships have created conditions for the unblocking of Ukraine's ports.

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The "grain deal" became a trap for Ukraine, orchestrated by Russia. However, thanks to Ukrainian intelligence agencies, the Ukrainian side has started to develop a negotiating position and a chance to unblock ports for all cargo.

As explained by Olexander Vodovoz, the head of the Project Office of the CEO of the Metinvest Group, in an interview on the 24 Channel, this is of utmost importance, as there is no alternative to the ports. Without them, Ukraine cannot revive its economy even to the pre-war state. Therefore, all ministries, not just the Ministry of Infrastructure, should work towards restoring free navigation.

"The grain deal is a trap that the Russians set for us. It legitimized the terror they were committing, and we allowed them to become pirates. It's very difficult for me to assess why the authorities made that decision back then. Perhaps there was no other way at the time. But the situation is different now: we can't ship anything. And this is a good opportunity for us to start exporting all of our products," Vodovoz emphasized.

He highlighted that due to the recent successful attacks on Russian ships (such as the sinking of the "Olenegorsky Gornyak" and the strike on the SIG tanker), Ukraine has demonstrated its strength in the Black Sea. These attacks are sure to elicit reactions from companies that provide ships for Russian goods transportation and from insurance companies working with Russian shipowners.

"What will happen to the insurance companies that insure these vessels? Most likely, we can expect them to refuse coverage in the coming weeks. The rates will probably increase for them. Certainly, some of those who own ships will refuse to transport Russian goods. And that's when we have a negotiating position. Now we have arguments, and I would very much not want us to enter negotiations and agree again on some portion of exports. If the Russians are shipping everything, then we must also ship everything," Vodovoz underscored.

He also noted that there is no alternative to the ports for Ukraine, and without them, the country cannot revive its economy even to a pre-war state.

"The blockade of ports is a significant blow both to taxes and foreign currency revenue. Currently, we don't feel the impact of this because we have assistance from Western partners. 51% of our budget is fully financed by donors. But what will happen when this assistance ends? If the policies in Europe, in the US change? That's precisely why we need to think now about how to open the ports and how to export our products. After all, the railway and road transport won't secure our exports," emphasized Vodovoz.

In his opinion, considering the gravity of the matter, Ukraine should intensify negotiations with international partners and involve more government departments within the country in finding a solution.

"For some reason, only the Ministry of Infrastructure is dealing with the unblocking of ports. There's no broad front within the government that includes the Ministry of Foreign Affairs, the Ministry of Economy, and the military agencies. But what's needed here is a broad front! A major campaign, so that every embassy in every country knows that the issue of unblocking ports is the number one priority for Ukraine," Vodovoz concluded.

It's worth noting that earlier, the Federation of Employers of Transport of Ukraine published a study in which they emphasized that unblocking exports through seaports will serve as the foundation for our country's economic recovery and overall regional security. This will contribute 10% to the GDP of Ukraine and bring in 135 billion UAH in tax revenues, while also allowing the restoration of over 500,000 jobs.

The Odessa Journal

The Odessa Journal

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