Escalation of conflict in Azov Sea brings largest risks to fish sector
Staff Writer |
The escalation of the conflict in the Azov Sea and the introduction of martial law brings largest risks to the fish sector, as well as exports logistics, First Deputy Agricultural Policy and Food Minister of Ukraine Maksym Martyniuk has said.
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According to his report in the Facebook social network, the assessment of the situation is preliminary and will change depending on the situation.
"The main blocking is for the fishing industry. The Azov Sea generates most of the catch ... As of yesterday, it was recommended to fishermen to return to the ports as a precautionary measure, no legal or factual restrictions were applied to them. Risk level: not determined," the deputy minister said.
According to him, the current situation will also affect the logistics industry. Thus, the martial law regime covers all port areas and may affect the work of the export infrastructure, although so far work is proceeding smoothly.
He also said that the volume of transshipment through the ports of Berdiansk and Mariupol may be forced to be reduced and redirected to the ports of Odesa, but the ministry does not expect big problems from the possible concentration of export flows.
In addition, it is possible the price of freight would grow, but, in small amounts and certainly not in the short term.
According to the first deputy minister, martial law may also have legal risks associated with the execution of external contracts and the definition of force majeure.
He also said that the escalation of the conflict may have an impact on prices, but the ministry assesses the influence of this factor as minimal.
"There are no food-related risks for the domestic market, in particular, for nine regions where the martial law is imposed. The supply of basic foodstuffs significantly exceeds the forecasted demand, and most of the areas in which the martial law is introduced see surplus," Martyniuk said. ■