Ukraine risks losing up to $70 million due to stoppage of iron ore exports
Due to the suspension of the Great Odesa ports, Ukraine may lose up to $70 million in foreign currency earnings every month. The situation is aggravated by Russian attacks on port infrastructure and limited alternative export routes.
Complications in the export of iron ore products, which make up half of all deliveries, seriously affect the country’s economic situation. At the end of July, the ports of Odesa and Chornomorsk ceased operations due to Russian strikes, prompting shipowners to cancel trips. The damage to a vessel carrying Ferrexpo products and the death of a crew member have signaled the industry.
The Poltava Mining and South Mining are already preparing to suspend production due to the inability to ship. Experts emphasize that alternative routes through the Danube, Poland, Romania, and Bulgaria have low capacity and are much more expensive. Given the drop in ore prices and the increase in rail tariffs, such supplies are often unprofitable.
Economist Irina Kosse notes that the sea is the main channel for Ukrainian trade, which is difficult to replace with other routes under current conditions. Stanislav Zinchenko from GMK Center adds that in 2022 export through European ports was possible due to higher ore prices, but now these routes are economically unfeasible.
Ukraine is experiencing significant economic losses due to export reductions, which could reach $700-800 million annually. Restoring shipping has become a key task for the government to avoid significant decreases in exports, tax revenues, and prolonged production halts.
| Factor | Description |
| Revenue loss | $60-70 million monthly, $700-800 million annually |
| Production decrease | Up to 40% |
| Alternative routes | Limited trade flow through the Danube, Poland, Romania, Bulgaria |
| Impact on enterprises | Production halt at Poltava Mining and South Mining |
