"No money left": sea blockade leaves Ukrainian farmers with full grain warehouses

The sea blockade has hit Ukrainian farmers not only through exports, but also through their daily finances. Grain remains in warehouses, buyers are disappearing, and farmers need money for fuel, salaries, and autumn sowing.

Farmer Serhiy Rybalko told the agency that his granary is already almost full. Meanwhile, corn harvesting will begin next month, which will also require space.

Previously, the farm sold its crop to the major exporter "Nibulon" and local processing enterprises. Now, according to Rybalko, there are practically no buyers.

"Everything just stopped. Finances froze. Sources of income dried up. No exports," the farmer says.

There is a harvest, but no money

According to analysts' estimates, under current conditions farmers can still earn money from wheat exports. For other grains, income may not even be enough to cover production costs.

For farms, this means a cash gap: formally there is a harvest, but turning it into money is difficult.

Deputy head of the Ukrainian Agrarian Association Denys Marchuk warns that farmers need these funds right now—to purchase fuel, pay salaries, and prepare for winter sowing.

Replacing the sea turned out to be harder than in 2022

After the start of the full-scale war, Ukraine already faced a blockade of Black Sea ports. At that time, a significant part of exports was rerouted through railways and road crossings on the western border.

Now repeating this scheme is significantly more difficult. Oleh Nivievskyi, an expert at the Kyiv School of Economics, points in particular to deteriorating relations with Poland, where farmers oppose competition from cheaper Ukrainian grain.

At the same time, trade conditions with the EU have become stricter, low water levels limit the Danube's capacity, and Russian strikes on railway infrastructure complicate land logistics.

Therefore, the main threat is no longer just the loss of the country's export revenue. If farmers cannot quickly sell the current harvest, some farms may simply have no money to prepare for the next one.

"Ukraine should prepare for the economic consequences of the port blockade possibly being no less serious, or even worse, than last time," Nivievskyi warns.

Source: Reuters