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Novorossiysk grain terminals hit
Ukraine’s overnight drone attack on Russia’s Black Sea port city of Novorossiysk put two major grain terminals out of action, according to Russian industry sources cited by Reuters.
“put two major grain terminals out of action”
Reuters reported that the attack “put two major grain terminals out of action,” while Russian officials said the city’s water supply was suspended and an emergency situation was declared after the strike.
The Financial Post, citing Bloomberg, said three of Russia’s largest grain terminals in Novorossiysk halted operations after being damaged, with grain shipments from Novorossiysk “currently not possible because of serious damage to terminal infrastructure.”
The Financial Post also said a loading gallery at United Grain Co.’s Novorossiysk Grain Plant collapsed and that several silos were damaged, while a gallery and truck unloading facility at Novorossiysk Grain Terminal, owned by Demetra, were also damaged.
In the same attack, Al Jazeera reported that Ukraine’s strikes killed three people and put two major grain terminals out of action, citing local officials in Novorossiysk.
Officials trade blame
Ukrainian President Volodymyr Zelenskyy said on Telegram that Ukraine hit Russia’s Novorossiysk naval base with drones, missiles and unmanned boats, framing the attack as part of a broader campaign against Russian military infrastructure.
Zelenskyy also warned that “The occupation fleet and all the infrastructure supporting it will not be safe as long as Russian aggression continues,” adding that “The war must be stopped, and all reasonable proposals for diplomacy are on the table.”
On the Russian side, Al Jazeera reported that Krasnodar region governor Veniamin Kondratyev said a child was among those killed and that 24 people were wounded in the attack.
Al Jazeera’s Andrei Kravchenko, the mayor of Novorossiysk, wrote in a post on Telegram that “Novorossiysk endured a horrific night,” as debris from downed drones fell on the grounds of four industrial plants.
Reuters said the attack damaged four unspecified enterprises, more than two dozen residential buildings and some educational facilities, while also reporting that Chicago wheat futures rose around 3% on Wednesday after the Novorossiysk strike.
Market and shipping fallout
The Financial Post said loading activity at Novorossiysk came to a near-complete halt, and that with loading activity halted at ports in the Sea of Azov and now Novorossiysk, Russian and Ukrainian exports would be sharply lower this month, according to Kpler’s Ishan Bhanu.
“European Black Sea ports are already dealing with peak exports”
Bhanu told Bloomberg that “European Black Sea ports are already dealing with peak exports and have little extra capacity to spare,” while the Financial Post said Russia may push more grain through Baltic ports but that they have only exported 400,000 tons in their highest month.
Reuters reported that Russia’s grain lobby group warned last month that Ukrainian attacks could shut down grain exports via the Black Sea in the near future, pushing up prices and causing hunger in Africa and the Middle East.
Beyond grain, Reuters said Novorossiysk also hosts oil export infrastructure for the Caspian Pipeline Consortium (CPC), and that there was no indication the CPC or tankers collecting oil from the pipeline had been struck during the overnight attacks.
Mundo Marítimo described how the end of the Grain Initiative left Ukrainian sea ports “effectively blocked and out of use for merchant ships,” while also warning that “All Russian waters fall within the War Risk Area” and that insurance quotes were generally valid for only 24 hours instead of the previous 48.
