Ukraine is among the top agricultural producers globally, with its farming sector employing 14 percent of the population and generating 41 percent of export earnings. Previous concerns about Russia obstructing Ukraine’s grain exports and causing global food shortages have been largely resolved.
Straight Arrow News contributor Peter Zeihan describes how changes in global politics and military strategies are helping Ukraine’s agriculture make a comeback in the market. One new factor is the use of Ukrainian drones, which have been very effective in pushing Russian ships out of parts of the Black Sea, enabling grain exports to resume.
Excerpted from Peter’s April 2 “Zeihan on Geopolitics” newsletter:
Ukrainian agricultural exports are finally having the boot lifted from their throats thanks to new tariffs on certain goods in the EU and Ukraine’s adoption of water-based drones.
Exporting Ukrainian agricultural products has been no easy feat; between Russian bombardment, infrastructure attacks, and European interdictions on Ukrainian goods, there wasn’t much movement early on in the conflict. Between the proposed tariffs by the French and some recent success with water-based drones, Ukraine might finally be able to get some product out.
These new tarrifs will free up the markets for Ukraine’s primary revenue-generating products, wheat and sunflower. The recent water-based drone attacks on Russian vessels have helped to reestablish the grain corridor through NATO territories, easing pressure further.
Although this is just a small victory for the Ukrainians, restoring their ability to earn through agricultural exports could help ease tensions across the board.