Ministry of Agrarian Policy and Food: Martial law in Ukraine and risks for agriculture
The Ministry of Agrarian Policy of Ukraine assessed possible risks for the agrarian sector as result of the escalation of the conflict in the Sea of Azov and the martial law which was introduced in a number of regions of Ukraine, starting from 28.11.
The list of risks with preliminary forecasts and estimates was outlined by First Deputy Minister of Agrarian Policy and Food of Ukraine Maxim Martynyuk.
He especially emphasized that there are no food-related risks for the domestic market, in particular in the regions where martial law was introduced. (Vinnytsia, Luhansk, Mykolayiv, Odesa, Sumy, Kharkiv, Chernihiv, Kherson, Zaporizhia and Donetsk regions.)
"The supply of basic foodstuffs far exceeds the projected demand, and in majority of areas in which martial law is introduced, there is a surplus," said Maxim Martynyuk.
The most significant are the risks for the fishing industry due to uncertainty about maintaining a stable and clear fishery regime in the Azov Sea. As of yesterday, fishermen were advised to return to the port as a precautionary measure, with no legal or factual restrictions being applied to them.
The situation may have an impact on logistics in the industry. Due to aggravated situation in the Azov Sea, the volume of transshipment through the ports of Berdyansk and Mariupol were forced to be reduced, and flows are redirected to the ports of Odessa. However, with gradual decrease in the monthly volumes of exports, major problems with possible concentration of export flows are not expected. He also expressed confidence that grain traders will not abuse the status of "Force Majeure", which allows the delay in the implementation of contractual obligations.
Maxim Martynyuk noted that the impact on the fluctuation of global prices was minimal. So, at yesterday's stock exchange session fluctuations in wheat prices were within 1%.
"The Ministry of Agrarian Policy is ready to be engage in resolving all issues that may be raised by market participants in connection with introduction of a martial law, as well as any other", - summed up the First Deputy Minister.
Source: http://www.minagro.gov.ua/uk/node/26578
Please see more about introduction of martial law with a map of Ukraine.