Friday, July 28, 2023

Russia Strikes Grain Port on Border to NATO Member


Russia’s surgical strike on the Moldovan-Romanian-Ukrainian Tri-Border on July 24 damaged Ukraine's grain port of Reni [Рени] on river Danube, - only within a stone's throw away from NATO territory. The West remained silent.



Russian forces targeting Ukraine's grain port of Reni [Рени]
right on the Danube river border to NATO member Romania.




Another video of Ukrainian military origin, hosted on a pro-Ukrainian twitter account and showing the moment of attack on Reni port more directly, couldn't be linked to this site for technical reasons. It is quoted by europereloaded on some military analysis website, dated July 25.

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The Consequences: Rising Prices for Grain and Fertilizer


The below quoted information comes from Phenix Net and refers to (official) information from Beijing.


On July 25, Russia launched an air strike on Kiev, the capital of Ukraine, and the conflict between Russia and Ukraine further escalated. And just the day before, Russia bombed the port of Reni on the Danube River in Ukraine, near the Romanian border, causing irreversible damage to the port and making it impossible to continue to use it. This port was once used by Ukraine as the last port for grain export after the black sea grain export agreement was interrupted. an alternate channel. In addition to the Russia-Ukraine conflict, Ukraine’s shipping ports were completely blocked, and its grain exports through land transport and inland rivers were also boycotted by five neighboring countries. Ukrainian food is also difficult to export. Ukraine is a major grain producer and exporter in the world. Affected by the further intensification of conflicts between Russia and Ukraine, the global prices of major grain futures such as wheat, corn, and soybeans have risen to varying degrees. On July 24, the Bloomberg Grain Sub-Index rose 5.02%. CBOT (*) corn futures rose 6.45%; wheat futures rose 8.6%; soybean futures rose 1.68%. Industry insiders said that with the sharp rise in international grain prices again, the prices of the three major fertilizers, nitrogen, phosphorus, and potassium, which are necessary for grain cultivation, may be further affected and are expected to stabilize and rise. Among them, due to the higher concentration and stronger monopoly of global potassium resources, and being at the core of the Russia-Ukraine conflict, it affects SINOTRANS (*) in Russia and Belarus, the main suppliers of potassium fertilizers. This event has a more positive impact on potassium fertilizer prices. In addition, one of the most direct results is that farmers in some countries will profitably sell futures to lock in grain sales prices, ensuring the planting area and increasing the demand for potassium fertilizers, which will also support the continuous rise in potassium fertilizer prices.

* SINOTRANS: Sinotrans Ltd. is a logistics enterprise under China Merchants Group and listed on the Shanghai Stock Exchange and the Hong Kong Stock Exchange. 中國外運股份有限公司(简称“中国外运”)是招商局集团下属的物流企业,在上交所和港交所挂牌上市。

* CBOT: The Chicago Board of Trade (CBOT) is a designated contract market offering products subject to CBOT rules and regulations.

While the above text is quoting CBOT, here are latest market prices from another source, published by Easy Net on July 26:



The impact of rising food prices on Africa's population as a result of Russia obstructing any grain export from Ukraine, became a subject of discussion on the 2nd Russian-African Summit in Saint Petersburg in July 2023. On July 28 Al-Jazeera therefore dealt with the subject in the following evaluation.


اعتماد غالبية الدول الأفريقية على واردات القمح الروسي والأوكراني؛ فعلى سبيل المثال يعتمد الصومال وبنين اعتمادا كاملا على البلدين، في حين تستورد مصر ما يزيد على 80% من احتياجاتها منهما، تليها السودان بـ75% ثم الكونغو 69% والسنغال 66%، وفق تقارير.

The majority of African countries rely on imports of Russian and Ukrainian wheat; for example, Somalia and Benin are completely dependent on the two countries. Egypt imports more than 80% of its needs, followed by Sudan with 75%, Congo with 69% and Senegal with 66%, according to reports.




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