The Ukrainian government has revoked the licensing of corn and sunflower oil exports

By Resolution № 352 of March 24, posted on the official website of the Cabinet of Ministers of Ukraine, the Government of Ukraine excluded corn and sunflower oil from the list of goods, the export and import of which should be licensed in 2022.

It will be recalled that on December 5, the government added corn, wheat, a mixture of rye and wheat (meslin), chicken and eggs, and sunflower oil to the list of goods to be licensed for export from Ukraine.

After that, the Ukrainian Grain Association sent a letter to the Prime Minister of Ukraine D. Shmygal asking to cancel the licensing of exports of wheat, corn and crude sunflower oil, as the decision slows down grain trade and does not help speed up exports.

In 2021/22 MY Ukraine as of February 23 exported 43 million tons of cereals and legumes (48.8 million tons in 2020/21 MY). Prior to the start of hostilities, Ukraine exported the bulk of grain (95% of total exports by sea) through the ports of Mykolayiv, the Black Sea and South Odessa. Another 5% was exported through the ports of Mariupol and Berdyansk. Grain was transported to ports mainly by rail.

Grain supplies to the EU were made by rail and road, and UZA estimated that they accounted for 5% of total grain exports from Ukraine (including by sea and land).

After the Russian attack, grain exports from Ukraine through port terminals were blocked. As of March 21, goods were received and shipped only through the Danube ports of Reni, Izmail and Ust-Dunaisk. In addition, five Black Sea ports handle cargo near berths without access to the sea.

Ukraine can export up to 600,000 tons of grain a month by land across the western borders, which is only 10-15% of the potential provided by seaports. However, this is a small but important opportunity for foreign exchange earnings to enter the country.