News
10.08.2010
Ukraine: grain export ban from the Russian Federation to have positive impact
The temporary ban for grain exports from the Russian Federation will cause the further price increase, which will have a positive impact on Ukrainian grain producers, stated Alexey Blinov, the economist of the investment company Astrum Investment Management. He added that Russian grain export decrease will mean the less yard time of cargo lots in the sea ports of Ukraine, which will also become useful for Ukrainian grain exporters.
At the same time according to the expert, Russian grain export ban will bring rather negative impact for Ukrainian railways (Ukrzaliznyzya) and Ukrainian sea ports, because the major part of Russian grain exports usually passed through Ukrainian transport infrastructure.
A.Blinov noticed that there is a substantial risk that the government will assume such measures, taking into account the historical experience: in 2003 the Government of V.Yanukovich was under the harsh critic because of the “grain crisis” after which the Government banned the export trading on several occasions. But according to the expert, to date the reporting risks of Ukraine are limited by the membership in the World Trade Organization, which forbids the additional export ban enforce.
