Airstrike on Reni Port Near Romania
US Wheat and Barley Gift Prices Surge 8.6%
Since the termination of the Black Sea Grain Initiative, Russian forces have been conducting airstrikes on Ukraine's major grain export ports, and concerns about escalation are growing as they have now targeted ports around Hryu near the Danube River, adjacent to Romania. International grain prices have started to fluctuate wildly again, indicating a worsening food crisis.
According to the New York Times (NYT) on the 25th (local time), in the early hours of the day, Russia launched an airstrike on Reni port, an alternative grain export port in Ukraine, causing significant damage to grain warehouses. The nearby Odesa port was also heavily damaged by airstrikes. It is reported that three grain warehouses in Reni were destroyed by Russian drone attacks alone.
Reni port is located in the lower Danube River delta, very close to Romania, a member of the North Atlantic Treaty Organization (NATO). Since the outbreak of the war in Ukraine, this area has been widely used as a detour route for grain exports.
The NYT pointed out that Russian forces did not strike grain warehouses too close to the Romanian border, but there is a risk that damage could occur inside the Romanian border area. The Romanian Ministry of Defense also stated in a press release, "There is currently no direct threat or damage to Romanian territorial waters," and added, "We are maintaining heightened vigilance together with our allies."
The reason for international concerns about escalation is that Russia has so far refrained from airstrikes in the lower Danube River area adjacent to Romania. Since Russia's invasion last year, Ukraine has expanded grain exports via land and inland waterways through the lower Danube region by about 1 million tons per month due to difficulties using the Black Sea routes. However, Russian forces have hesitated to strike infrastructure in this area due to fears of escalation with NATO member Romania and the possibility of full-scale conflict with NATO forces.
The global food crisis is intensifying. United Nations Secretary-General Ant?nio Guterres has repeatedly urged Russia to resume the Black Sea Grain Initiative. He emphasized, "I call on Russia to return to implementing the Black Sea Grain Initiative in line with my recent proposal," and "I urge the international community to unite for an effective solution in this critical effort."
International grain prices, which have been fluctuating wildly, surged again. On this day, the price of U.S. wheat futures traded on the Chicago Board of Trade (CBOT) soared 8.60% from the previous session to 757.50 cents per bushel.
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