Russia Occupies Key Black Sea Port 'Kherson'... Grain Supply Chain Crisis Intensifies

Stalemate on the Northern Front and Expansion of Southern Offensive
Concerns Over Supply Shortages of Grain, Aluminum, and Nickel

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] As Russia occupies Kherson, a strategic stronghold in southern Ukraine, and intensifies its offensive on Black Sea coastal cities, the global supply chain faces the risk of paralysis. The Black Sea is home to the world's largest wheat production areas and concentrated ports where Russia's major mineral resources are exported. There are concerns that a prolonged war could deal a significant blow to the global economy.

According to The New York Times (NYT) on the 2nd (local time), Russian forces occupied Kherson, marking the first time in seven days since the outbreak of the war that a major Ukrainian city has been captured. Igor Kolykhaiev, mayor of Kherson, stated at a press conference that "Russian forces have completely surrounded the city, and there are no Ukrainian troops left here," adding, "The Ukrainian forces have withdrawn to the nearby city of Mykolaiv (Nikolaev)."

While the battle lines in the capital Kyiv and northern Ukraine remain stalemated, Russian forces are focusing their attacks on southern Black Sea coastal cities. Following the occupation of Kherson, offensives on Odesa and Mariupol have intensified, increasing damage to trade vessels in the Black Sea area. According to CNN, since the outbreak of the war, four trade ships in the Black Sea have been attacked by Russian missile strikes, and about 200 trade ships have been stranded in the Black Sea region.

Global shipping companies have also refused entry to Russian ports citing safety concerns. Maersk, the world's largest shipping company, announced on the 1st that it would temporarily suspend all vessel calls to Russian ports except for food and medicine. Other major shipping companies such as MSC and Ocean Network Express (ONE) have also halted calls to Russian ports.

Black Sea port cities serve as supply chain routes for wheat exports from Russia and Ukraine, which are major global wheat producers. Additionally, Russian minerals are exported through key Black Sea ports.

In the global grain market, Russia and Ukraine supply 29% of the world's wheat, 19% of corn, and 80% of sunflower oil. As of last year, Russia accounted for about 6% of global aluminum production, 40% of palladium, and 11% of nickel.

This content was produced with the assistance of AI translation services.