Ukraine hopes the UK government will help calm the fears of ship captains who are afraid to enter the mined waters of the Black Sea to smuggle Ukrainian grain.

Under an agreement signed by the UN and Turkey, Moscow has pledged not to attack merchant ships that will be involved in the export of Ukrainian food from ports like Odessa, which has been blocked since the beginning of the Russian invasion.. Politico writes about this, recalling that the war has been going on for five months. All this time, millions of tons of Ukrainian wheat and corn have been blocked in the country.. Global food prices have started to rise because Ukraine is one of the main grain exporters. It supplies many import-dependent countries in Africa and the Middle East.

Russia launched a missile attack on Odessa a few hours after the signing of the agreement. And this highlights how dangerous navigation in the Black Sea is while the war continues.. There is growing fear that major traders will think twice before sending their ships to Ukraine. Because you have to pay dearly to insure them.. Ukrainian Infrastructure Minister Oleksandr Kubrakov, who signed the grain agreement last week, told Politico he is in talks with the UK government to provide guarantees.. These guarantees could alleviate traders' concerns.

“We have started such discussions, but so far only from our side.. We will start discussions with the UK, as well as with some international financial institutions,” Kubrakov told the publication..

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British Foreign Secretary and presidential contender Liz Truss went even further, saying during a televised debate with rival Rishi Sunak that " London is the global center of the marine insurance industry. It is here that major market players such as Lloyd's are based..

“We are in close contact with the insurance industry to provide commercial maritime guarantees to support the UN initiative to transport grain from Ukraine,” the UK Foreign Office told Politico..

However, contrary to Trass, Kubrakov said on Wednesday that no deal has yet been finalized.. However, he hopes that one of them will appear soon..

“The idea is not only to provide subsidies, but to provide additional guarantees,” he explained..

Ukraine also wants to start talks with the World Bank to use its " Although the EBRD rejected the prospect of such negotiations. Analysts believe that the issue of the confidence of marine transport companies will be the next obstacle to the execution of the grain deal. This is why insurance is critical.

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“The big question is how many ships will call at this port. This will be litmus test. It doesn't matter how the agreement was reached if shipowners and insurance companies can't get the numbers to fit.. No one wants to put their ships at risk,” said Mike Lee, director of consulting firm Green Square Agro..

Kubrakov explained that additional insurance guarantees will help reduce the cost of logistics and increase the income of Ukrainian farmers. Ukrainian MP Larisa Bilozir told Politico that the high cost of insurance could prevent the grain deal from reaching its maximum potential..

“Before the war, freight cost $30 per ton, and now, perhaps, the price will rise to $200.. I'm sure it will be 5-6 times higher due to insurance and high risk,"