ADVERTISEMENT

Commodities

UK Warns of Grain Threat After Russia Steps Up Black Sea Attacks

(Source: Bloomberg)

(Bloomberg) -- An increase in Russian attacks on Ukrainian port infrastructure in recent weeks threatens food shipments to destinations from Gaza to southern Africa, the UK warned.

British intelligence has detected a “noticeable increase in Russian risk appetite,” leading to at least four merchant ships being damaged during attacks on Black Sea ports between Oct. 5 and Oct. 14, Prime Minister Keir Starmer’s office said late on Tuesday in a statement. That’s delayed a cargo of vegetable oil for the World Food Programme in Gaza, as well as hitting grain and corn shipments to Egypt and southern Africa, it said.

Ukraine is a key global supplier of grain, meaning Russia’s strikes — which coincide with harvest season — pose a threat not just to its neighbor’s agriculture-reliant economy, but also to world food security. The UK, which alongside Norway is leading efforts to protect a maritime corridor in the Black Sea, described the affected shipments as “collateral damage” in Russian President Vladimir Putin’s campaign against Ukraine. The conflict between the two nations, sparked by Russia’s invasion in 2022, is approaching the 1,000-day mark.

As Britain seeks to bolster defense in the face of the threat from Russia and others, it’s also due Wednesday to sign a defense pact with Germany, aimed at increasing cooperation on new deep-strike weapons, armored vehicles and torpedoes. Earlier Tuesday, the government also said it’s increasing support to Ukraine by loaning the country £2.3 billion ($3 billion) to purchase military equipment, paid for by profits generated by frozen Russian assets as part of a wider $50 billion package from the Group of Seven nations and European Union. 

Russia has been targeting Kyiv’s export infrastructure since the 2022 invasion, with strikes on its ports in the Black Sea and on the Danube. Shipments have remained resilient despite considerable damage and a very dangerous working environment, as traders found new routes to export. After the latest uptick in Russian attacks, the cost of getting war insurance cover for cargo vessels is rising.

“Russia’s indiscriminate strikes on ports in the Black Sea underscore that Putin is willing to gamble on global food security in his attempts to force Ukraine into submission,” Starmer said. “In doing so, he is harming millions of vulnerable people across Africa, Asia and the Middle East, to try and gain the upper hand in his barbaric war.”

South Korea’s National Intelligence Service said last week that Russian navy ships had transported approximately 1,500 North Korean special forces to Russia for “adaptation” training in advance of a deployment to Ukraine. Starmer said such a move by Russia is “an embarrassing and desperate act.”

Separately, Britain’s agreement with Germany paves the way for Rheinmetall AG to open a new UK artillery gun barrel factory that’ll work with Sheffield Forgemasters and support more than 400 jobs, the UK’s Ministry of Defence said in a separate statement late on Tuesday. The two nations will also collaborate on Boxer armed vehicles, land-based and airborne drones, and protecting undersea cables, the MoD said.

--With assistance from Áine Quinn.

©2024 Bloomberg L.P.