"Another important step": Lloyd's insures grain exports from Ukraine

After Russian blockades prevented Ukrainian grain deliveries, the world market is struggling with high price increases.

"Another important step": Lloyd's insures grain exports from Ukraine

After Russian blockades prevented Ukrainian grain deliveries, the world market is struggling with high price increases. Now Russia is releasing exports again, but shipowners are demanding security guarantees. The British company Lloyd's steps in.

British company Lloyd's insures ships exporting grain from Ukraine. "This is another important step to ensure grain exports can leave Black Sea ports following last week's landmark UN agreement," said British Foreign Secretary Liz Truss.

Russia and Ukraine, mediated by the United Nations and Turkey, signed an agreement to release grain exports. Nevertheless, shipowners and traders warned that they could not navigate through the mined waters without safety guarantees.

The insurance company said that with the export facility, ships transporting grain and other food products from Ukrainian ports have reliable cover for their voyages. This offers additional protection to the agreed deal, said the responsible Lloyd's manager Patrick Tiernan.

During a visit to the southwestern Ukrainian port of Odessa on Friday, Ukrainian President Volodymyr Zelenskyy announced that grain exports by ship across the Black Sea would soon start.

Ukraine is one of the world's largest grain exporters. After the start of the war, however, Russia had blocked the Ukrainian seaports. In addition, Ukraine mined its coast to protect against Russian landing missions.

World market prices rose due to a lack of grain deliveries; the UN increasingly fears hunger crises. According to information from Kyiv, more than 20 million tons of last year's harvest were stuck due to the Russian sea blockade. Moscow denies responsibility for the rise in food prices and blames it on Western sanctions against Russia.