AT A GLANCE
Russia's war on Ukraine: Maritime logistics
and connectivity
Ukraine is one of the worlds' largest producers of grains and oilseed, and – for the export of these products to
Africa, the Middle East and Europe – heavily dependent on its maritime transport and ports, currently blocked
because of the war. Ukraine and Russia together typically export nearly 12 % of food calories globally. Before the
war, Ukraine exported more than 90 % of its agricultural products, around 6 million tons per month, via the Black
Sea. Alternative routes by road and rail only provide for a partial solution, while free navigation in open sea is an
international right of sovereign states.
Background
The closure of Ukrainian ports has caused serious disruption in European and other supply chains, and
owing to lack of maritime logistics and connectivity, an international food crisis is looming. Russia's war on
Ukraine has affected the maritime transport sector heavily, including its ports. With commercial ships hit in
the conflict, operators have to redirect freight transport and divert vessels. Most large shipping companies,
citing unpredictable operational impacts, have suspended shipments to and from Ukraine and Russia.
Important shipping routes in the Black Sea – in particular, Odesa and the Sea of Azov – are blocked and
occupied. At the start of the war, around 2 000 seafarers were stranded aboard 94 vessels in Ukrainian ports.
These numbers have fallen slightly. According to the Atlantic Council, Russian naval ships have hit at least
10 commercial ships since Russia's assault. About 80 commercial ships have been blocked in the Black Sea
and the Sea of Azov for months. Before the war, Ukrainian Black Sea ports accounted for up to 90 % of the
country's grain and oilseed exports, of which one third is destined to Europe, China and Africa. At the
European Parliament's Transport (TRAN) Committee meeting in May 2022, Ukrainian Minister of
Infrastructure Oleksandr Kubrakov said that 70 % of total exports from Ukraine are normally carried by sea.
With supply chains heavily disrupted, re-routing of goods to road and rail will not suffice, given the volumes
implicated. This situation exacerbates congestion at terminals, putting maritime logistics and connectivity,
as well as maritime safety and security, at risk. The International Maritime Organization has called for safe
maritime corridors, and the International Transport Forum has made a call for action to unblock trade routes
and seaports in the Black Sea for international trade to resume. The United Nations is attempting to open a
protected shipping lane in the Black Sea, avoiding an international food crisis. Meanwhile, Lithuanian
Minister of Foreign Affairs, Gabrielius Landsbergis, proposed establishing a non-military international
maritime coalition to break through the blockade of Ukrainian ports.
EU action
In response, the EU has adopted multiple sanctions against Russia. Companies targeted by EU sanctions
include Novorossiysk Commercial Sea Port and the United Shipbuilding Corporation. The fifth EU sanctions
package includes a ban on Russian-flagged vessels entering EU ports. Exemptions apply, for example for
medical, food, energy, and humanitarian purposes. The European Council conclusions on the sixth
sanctions package envisage a ban – with EU leaders having agreed on a partial ban – on most Russian oil
imports (crude oil and petroleum products) arriving in the EU by sea by the end of 2022. This amounts to
around two-thirds of imports from Russia, reaching up to 90 % by the end of the year. EU operators will be
banned from insuring and financing oil transport services, in particular through maritime routes, to third
countries, after a six-month wind-down. This will mainly concern insurance companies from the EU and the
United Kingdom. EU ports are facing the need to apply EU sanctions from the fifth and sixth packages
against Russian-linked vessels. The situation could affect the forthcoming review of European maritime
safety rules, not least regarding port state control, and the TEN-T review for improving connectivity with,
inter alia, Ukraine. Russia has been suspended, until further notice from the Paris Memorandum of
Understanding on port state control, which includes ports of 22 EU Member States. The European Sea Ports
EPRS | European Parliamentary Research Service
Author: Karin Jacobs, Members' Research Service
PE 733.603 – July 2022
EN
EPRS Russia's war on Ukraine: Maritime logistics and connectivity
Organisation stressed that Europe's ports are crucial in keeping supply chains operational and setting up
new alternative routes for Ukrainian exports. Ports are pivotal in safeguarding energy supplies and reducing
energy-dependence from Russia. The European Parliament has welcomed, in particular, the third pillar of
the fifth package of sanctions, calling on the EU to further tighten sanctions against the Russian maritime
sector and to refuse entry to EU ports for ships that have docked in Russia on their way to the EU. In this
respect, Parliament proposed that the European Maritime Safety Agency (EMSA) could play a role in
providing a list of Russian vessels to be banned from EU ports, taking into account those that have re-
flagged or re-registered since February 2022. EMSA could provide guidance on the uniform application of
sanctions, while maintaining a level playing field for EU ports. EMSA is also conducting flights over the Black
Sea to enhance maritime surveillance. Parliament has also asked to refuse calls at EU ports to all ships,
irrespective of who owns or operates them, if they also call at Russian ports along their route. It has
welcomed the decision of several of the world's largest shipping companies based in Europe to halt all
cargo bookings to and from Russia. Ships wanting to make an EU port call will not be allowed to bunker fuel
in Russian ports or from Russian bunkering ships at sea. To avoid further supply chain delays, governments
should ensure sufficient staff and resources are available for these measures. A parliamentary question has
also expressed concern over the impact of international shipping, logistics, supply chains, and fuel prices,
in particular on freight rates in the maritime sector. The EU's plan for solidarity lanes as alternative logistics
corridors, by road, rail and water, to export agricultural goods (e.g. grain, maize) from Ukraine, aims inter
alia to unblock 20 million tons of foods in Odesa. The Commission presented its action plan to the TRAN
committee in June. Its aim: to redirect 3 million tons of grain a month through new modal routes, such as
the Danube, Constanta (Romania), and Polish, Baltic and Adriatic ports. According to the Commission,
around 6 million tons have been exported up to now. Most recently, the EU has signed a truck deal with
Ukraine and Moldova, to shift cargo from sea to road. This would sustain export flows and allow Ukraine to
import necessary goods. At the June 2022 European Council meeting, Ukraine and Moldova, as Black Sea
states, were granted EU candidate country status.
Outlook Figure 1 – Rising shipping prices (daily vessel earnings, in
With the Sea of Azov fully blocked by Russia –
US$/day)
and Black Sea ports, including Odesa, not
being operational for an indefinite period – 50000
45000
Ukraine, the EU and UN are taking action to
40000
redirect trade flows and goods away from
35000
Ukrainian ports. Increasing the capacity of the 30000
Sulina channel connecting the Danube River 25000
War on
with the Black Sea could be one option that Ukraine
20000
would permit additional exports. Alternative 15000
transit through Danube Maritime Cluster ports 10000
could cover a part of global transport needs. 5000
Connections need to be made with ports such 0
as Constanta, visited recently by the TRAN
committee, and Varna (Bulgaria). Meanwhile,
Turkey has forbidden access of all naval ships
through its territorial waters, based on the Data source: June 2022 UNCTAD report. The graph represents the 'Clarksea
Montreux Convention, and Ukraine has index', tracking vessel earnings across major shipping sectors.
recently asked Turkey to take action over a
Russian-flagged cargo ship carrying grain from Berdyansk port in the Sea of Azov. Bunker fuel prices have
risen worldwide, over which Parliament has already expressed its concern. According to the UN Conference
on Trade and Development (UNCTAD), the war in Ukraine is hindering trade and maritime logistics, in
particular in the Black Sea region, leading to more global vessel demand and higher costs of shipping
globally (see Figure 1). The war and the pandemic have affected global shipping costs. Disruptions in
logistics and port operations, the destruction of infrastructure, and trade restrictions have increased marine
insurance costs and fuel prices. Shipping distances have increased, along with transit times and therefore
costs.
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parliamentary work. The content of the document is the sole responsibility of its author(s) and any opinions expressed herein should not be taken
to represent an official position of the Parliament. Reproduction and translation for non-commercial purposes are authorised, provided the source
is acknowledged and the European Parliament is given prior notice and sent a copy. © European Union, 2022.
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