Ukraine says Russia hits grain facilities in Danube river port

Russia has damaged grain warehouses while conducting drone attacks July 24 at the river port of Reni on the Danube expanding its target area, Ukraine said.

Export routes through the Danube are important for Ukraine to ship out grains and other food products, since the suspension of the grain corridor.

"Russian terrorists once again attacked [the] Odesa region this night. This time, the target is the port infrastructure of the Danube River," Odesa province Governor Oleh Kiper said on his official telegram channel July 24.

Three warehouses with grain were destroyed in the port of Reni by Russian drones, local media reports added. Russian drones also hit the port of Izmail on the Danube river.

Russia has been targeting port infrastructures around Odesa and Chornomorsk after it walked out of the Black Sea grain deal on July 17.

The UN and Turkey have brokered the deal, between Russia and Ukraine on July 22, 2022, to facilitate grains exports through three Ukrainian ports – Odesa, Chornomorsk, and Pivdenny.

Ukraine has been developing an alternate export route through the Danube River amid rising uncertainties over the traditional routes through the Black Sea.

"Warehouses where grain crops were stored were destroyed, tanks for storing other types of cargo were damaged. A fire broke out in one of the production premises, which was promptly extinguished," the National Police of Ukraine said in a statement on the official telegram channel July 24.

Russia has also attacked the port infrastructure of the Odesa region, Ukrainian news agency Interfax reported July 24.

Russia's Foreign Affairs Ministry did not respond to queries from S&P Global Commodity Insights on the attacks.

Stoppage of shipments under the deal are likely to impact global supplies of wheat and corn. In marketing year 2023-24 (July-June), Ukraine and Russia together were expected to account for nearly 27% of global wheat trade and Ukraine may supply almost 10% of global corn shipments, according to data from the US Department of Agriculture.

Platts, part of S&P Global Commodity Insights, assessed Russian 12.5% FOB wheat at $241/mt and Ukrainian 11.5% FOB wheat at $214/mt July 21, both up $3/mt day on day.

Platts assessed Ukrainian FOB corn at $202/mt July 21, down $2/mt on the day, and sunflower oil FOB Ukraine at $929/mt July 21, up $58/mt day on day.