Ukraine Weighs Ship Insurance to Restart Black Sea Food Exports

Ukraine is exploring whether extra insurance cover for ships carrying food exports could help restart seaborne trade that has been crippled by Russian attacks on vessels and port infrastructure, according to a farm lobby group and a major farmers' union.

Since the summer, Russia has sharply intensified strikes on Ukrainian seaports and commercial shipping, bringing the country's seaborne exports to a virtual halt.

Ukraine has traditionally moved about 90% of its export cargo through Black Sea ports. The disruption has already reduced agricultural exports by 60%, putting the 2027 planting campaign and the harvest that follows it at risk.

The country grows roughly three times more grain than it consumes at home. Without unrestricted export access, it could run short of grain-storage capacity, see domestic prices fall sharply and, in the end, face a wave of farmer bankruptcies.

Kyiv has not formally suspended Black Sea shipping, but shipowners are refusing to call at ports in the Odesa hub because of fears their vessels could be hit in Russian attacks.

"The main challenge remains ensuring the safety of maritime transport and the stability of export corridors. The introduction of ship-insurance mechanisms was discussed," the UCAB lobby group said in a report issued after a meeting with Ukraine's president and prime minister.

Ukraine set up a state compensation scheme in 2023 to cover damage to vessels from attacks. It also launched the Unity Facility, a war-risk insurance mechanism created with the involvement of the government, Marsh McLennan and underwriters at Lloyd's of London.

The farmers' union UAC said another way to improve farmers' finances could be lending secured against stored grain. Under that arrangement, farmers could use grain held in certified warehouses as collateral for working-capital loans, letting them avoid selling their harvest immediately at depressed domestic prices.