Russian ports are a no-go zone for global terminal operators; logistics firms withdraw from Russia

Vienna, Austria (Ports Europe) February 28 – Global container line Maersk is considering suspending transports to Russia and Russian ports. This is only the very beginning of a mass exodus of Western firms from the Russian market. Russian ports will not be spared and will be a no-go zone for terminal operators. FedEx and United Parcel Service (UPS), both United States based, have stopped deliveries to Russia. Insurance firms have increased costs for shipping activity in the Black Sea, following reports about Russian Navy starting to capture Ukrainian ships in Azov and Black Seas, with at least seven such cases reported so far. Energy giant BP, Russia’s largest foreign investor, one of the world’s biggest banks HSBC, and the world's biggest aircraft leasing company AerCap are all looking for ways to exit their Russian investments. Norwegian energy giant Equinor said that it would start exiting all its joint ventures in Russia and the Norwegian sovereign wealth fund also said it would exit all of its investments there. Australia's sovereign wealth fund also said it planned to wind down its exposure to Russian-listed companies. Major Russian banks have been excluded from the SWIFT global financial transactions network – that will limit Moscow's ability to use its $630 billion foreign reserves; Russia's rouble plunged 30% to an all-time low on February 28. Ukrainian second largest Azov Sea port, Berdyansk, was occupied by invading Russian forces on February 27. Berdyansk is mostly used for exports of coal, grain, sunflower-seed oil, iron and other commodities. Five days after the start of Russian invasion in Ukraine, it seems that the Azov Sea will most likely become a Russian lake under the Kremlin’s full control. For Ukraine it means losing the two strategic Azov Sea ports of Mariupol and Berdyansk. Mariupol is now surrounded by Russian troops and is being subjected to shelling and attacks. Its capture has been a major objective for Moscow because it is key to establishing a land bridge linking western Russia and Crimea, occupied by Russia in 2014. The Sea of Azov is a shallow inland body of water smaller than Lake Michigan bordered by Russia and Ukraine. According to Andrey Klymenko, editor-in-chief of BlackSeaNews, in the sea there are almost four times more Russian ships than Ukrainian. And since there is no border at sea, the Russian fleet can get as close to the Ukrainian coast as it wants. A Washington Post article claims that the coastline of Azov has more strategic and economic value for Russia than the eastern border regions of Ukraine. Ukrainian land along the sea is what separates mainland Russia from annexed Crimea. The Sea of Azov, a rich fishing ground in Soviet times has been of great strategic importance to an independent Ukraine. Ukraine, invaded by Russia on February 24, became transport-wise a landlocked country after Russia blocked the Azov Sea, and Ukraine closed all its Black Sea ports for commercial shipping. Ukraine is one of the world’s biggest grain and metals exporter with its corn sold to Europe and China, while its wheat is bought by the Middle East countries, North Africa, Turkey, and many others. Ukraine can still use Danube River for water transport towards Europe. More Ports Europe news about the Ukrainian crisis More Ports Europe news about Port of Berdyansk Copyright (C) Ports Europe. All Rights Reserved. 2022.

Russian ports are a no-go zone for global terminal operators; logistics firms withdraw from Russia

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Russian ports are a no-go zone for global terminal operators; logistics firms withdraw from Russia

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All news

DP World issues a “blue bond” in the Middle East

Turkey’s STM to build two ships for Portuguese Navy

Port of Figueira da Foz moves tugboat to the Atlanticeagle Shipbuilding shipyard

Port of Aveiro advances Maritime Accessibility Improvement Project

Moby Dik Terminal joins Unified Information System Of Global Ports

Our Expert Analysis

Latest Free Reads

Top Ports