Global markets continue to adjust as Russia/Ukraine war moves into second year
Ag Secretary Tom Vilsack says the global market continues to adjust to disruptions caused by Russia’s invasion of Ukraine that happened one year ago today.
The Black Sea port route is currently open, but there are no assurances that will continue. Vilsack told attendees of the USDA’s Ag Outlook Forum that both the United States and the European Union must ensure market access. “We have to be in a position to be able to respond if, at some point in time, that port is closed again,” he says. “To be able to get the grains to African countries, to Middle Eastern countries that are reliant on those grains because that will create a significant amount of instability in that part of the world, which the world doesn’t need.”
The EU Commissioner of Agriculture Janusz Wojciechowski says support is needed to keep alternative routes available. “In 2022, the exports from Ukraine were about 20 MMT by the Black Sea Route,” he says. “And 25 million by solidarity lanes.”
Vilsack says Ukraine’s ag economy will need to be rebuilt once the war ends. “We’ve signed a Memorandum of Understanding, the USDA and the Ministry of Agriculture in Ukraine to support and help that rebuild.”
Vilsack and Wojciechowski made their comments on the one-year anniversary of Russia’s invasion of Ukraine on a panel during the USDA’s Ag Outlook Forum.