Ukraine Considers Ship Insurance to Revive Food Exports, Farm Groups Say
Ukraine is examining whether additional insurance cover for ships carrying food exports could help revive seaborne trade disrupted by Russian attacks on vessels and port infrastructure, a farm lobby group and a major farmers’ union said on Wednesday.
Ukraine traditionally shipped about 90% of its export cargo through Black Sea ports. The disruption has already cut agricultural exports by 60%, jeopardizing the 2027 planting campaign and subsequent harvest.
Ukraine produces roughly three times more grain than it consumes domestically. Without unrestricted export access, the country could face a shortage of grain-storage capacity, a sharp fall in domestic prices and, ultimately, farmer bankruptcies.
Kyiv has not formally suspended Black Sea shipping, but shipowners are refusing to call at ports in the Odesa hub for fear their vessels could be hit by Russian attacks.
“The main challenge remains ensuring the safety of maritime transport and the stability of export corridors. The introduction of ship-insurance mechanisms was discussed,” the UCAB lobby group said in a report issued after a meeting with Ukraine’s president and prime minister.
Ukraine introduced a state compensation scheme in 2023 to cover damage to vessels caused by attacks.
It also launched the Unity Facility, a war-risk insurance mechanism established with the participation of the government, Marsh McLennan, and underwriters at Lloyd’s of London.
Farmers’ union UAC said one way to improve farmers’ financial position could be lending secured against stored grain.
Under the arrangement, farmers could use grain held in certified warehouses as collateral for working-capital loans, allowing them to avoid selling their harvest immediately at depressed domestic prices.
(Reporting by Pavel Polityuk; editing by Mark Potter)
Photograph: A vessel carrying Ukrainian grain in Mamara, Turkey. Photo credit: Chris McGrath/Getty Images