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Canada to help Ukraine export 25 million tonnes of stranded grain

Economy
09 May 2022 17:20 (AEST)

Canadian Prime Minister Justin Trudeau. Source: Reuters

Canada is set to help Ukraine export the millions of tonnes of grain currently stranded in the Eastern European country as Russia’s military invasion continues.

Canada’s Prime Minister, Justin Trudeau, this week said his country will help Ukraine work out options on how to get the grain to other countries around the world.

It’s a move that could potentially help not only ease soaring food prices but also get food to those who rely on Ukraine’s imports.

Ukraine is allegedly sitting on some 25 million tonnes of grain that it can’t export due to infrastructure challenges and blocked Black Sea ports from Russia’s invasion.

Over the 2020/21 season, Ukraine was the world’s fourth-largest exporter of maize and sixth-largest exporter of wheat, according to International Grains Council data. As such, the inability to export its agricultural products — along with grim forecasts of Ukraine’s 2021/22 wheat harvest, also due to the war — is impacting already-rising food prices.

Prime Minister Trudeau said in an interview with Reuters the Russia-Ukraine war was “preventing grain that the world needs from getting out to the world”.

“We know people around the world are going to be starving because of the actions of Russia,” Mr Trudeau said.

“We’re just looking to solve a very direct problem.

As it stands, Ukraine has been forced to export grain via train over its western border since Russia launched its invasion in late-February.

Kyiv has allegedly also been looking to use ports on the Danube river in southern Ukraine to help with exports.

While Canada’s Prime Minister did not reveal details of the country’s plans to help, he said shipments via Danube river ports were one of several options being considered as part of the solution to the stranded grain.

Canada is providing $25 million to the United Nations’ World Food Programme as part of its efforts to assist Ukraine, and Mr Trudeau said Canada would also remove tariffs on all Ukrainian imports to Canada for the next year.

Today’s news follows the analysis of satellite images of Ukraine that suggest the country’s 2021/22 wheat harvest may fall by as much as 35 per cent compared to normal years.

Fighting between Russian and Ukrainian forces is largely concentrated in Ukraine’s east, where its main wheat-growing regions are found.

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