Ukraine proposes that Saudi Arabia increase its direct grain purchases
Ukraine has urged Saudi Arabia to increase direct purchases of Ukrainian grain and agricultural products as Russian attacks disrupt maritime exports and raise logistics costs by about $45/tonne. The countries also discussed Saudi investment in Ukrainian ports, terminals and agro-processing, alongside expanding poultry and veterinary product exports.
Ukraine has proposed that Saudi Arabia increase direct purchases of Ukrainian grain and other agricultural products amid ongoing problems with maritime exports. The issue was discussed by Ukraine’s Minister of Agrarian Policy and Food Taras Vysotskyi and Saudi Arabia’s Minister of Environment, Water and Agriculture Abdulrahman Al-Fadley.
Vysotskyi said Russian attacks on Ukraine’s port and logistics infrastructure have significantly complicated exports and increased costs. According to the Ministry of Agrarian Policy, additional logistics costs for Ukrainian exporters have already risen by around $45/t.
Before the disruption of shipping through the Greater Odesa ports, Ukraine exported around 6 mln tons of cargo per month. Even maximum use of alternative routes can compensate for only part of these volumes, making maritime exports critical for maintaining grain shipments.
The two sides also discussed attracting Saudi investment into Ukraine’s agricultural sector. A Ukrainian-Saudi business seminar is planned to present potential investment projects in port infrastructure, terminals, agricultural processing and production.
Ukraine is also seeking to expand the presence of its poultry meat and veterinary product producers in the Saudi market. Following the talks, the two sides agreed to prepare a draft memorandum of cooperation and explore new trade and investment projects.
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Source : Ukr Agro Consult
