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If Russia slows down the "grain deal", Ukrainian factories may shut down

If Russia slows down the "grain deal", Ukrainian factories may shut down
If Russia slows down the "grain deal", Ukrainian factories may shut down Ukraine news 12 May 2023 at 16:00

According to the General Director of the Ukrainian Agrarian Confederation, Pavlo Koval, Russia could cause a halt in the operation of factories in Ukraine by hindering the "grain corridor." He emphasizes that Russia is trying to slow down the movement of ships, especially those carrying more valuable goods, such as sunflower oil. If tankers carrying this oil are not allowed through the "corridor," it could lead to the shutdown of two or three sunflower processing plants in Ukraine.

"If you have a plant in Yuzhny, right at the port, and you have, for example, 100,000 tons of finished products ready, then the Russians understand: 'why let a tanker go for loading there when it's already loaded, all the capacity is occupied, let it lay off workers, let the price of oil, sunflower in Ukraine drop,'" the expert said.

Pavlo Koval explains that Russians are trying to fill tankers with cargo and not release them to create interruptions in the supply of raw materials to the factories. This can lead to price reductions for already manufactured goods and violations of contracts with buyers. Entrepreneurs also pay fines for tankers that are delayed or unable to leave the "corridor," resulting in additional losses.

It is noted that the number of ships passing through the "corridor" has significantly decreased since January, as Russia chooses ships for inspection that are not a priority for Ukraine and spends more time inspecting them than necessary. This leads to delays in the delivery of raw materials to enterprises.

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