Ukraine Seeks €500 Million To Restore Black Sea Ports Damaged By Russia

Ukraine has declared an urgent need for at least €500 million (around $566 million) to begin rebuilding vital port infrastructure along the Black Sea coast. This infrastructure has been severely damaged or destroyed by continuous Russian missile and drone attacks over the course of more than three years of war.

A Ukrainian government official explained that almost 400 port infrastructure sites have suffered damage during the conflict. These ports are crucial for Ukraine’s economy since over 90% of its exports depend on sea transportation. Ukraine mainly exports grain, metals, and other goods through these Black Sea ports.

At a recent Black Sea Security Forum held in Odesa, Ukraine’s Deputy Minister of Territorial Development stated that the government has identified the most critical port facilities that need immediate reconstruction. The focus is on restoring the main port functions so that shipping and export operations can resume.

Currently, Ukraine operates only three major ports in the Odesa region. Other Black Sea ports have been forced to halt their operations since Russia launched a full-scale invasion in February 2022.

The total cost to rebuild all damaged port infrastructure is estimated to be about €1 billion. However, the government is initially requesting half of this amount, €500 million, to restore basic cargo handling and operational capabilities at the ports.

According to a World Bank report from last December, the overall cost for Ukraine’s reconstruction and recovery could reach $524 billion (approximately €506 billion) over the next ten years. This figure is nearly three times Ukraine’s expected nominal GDP for 2024.

Additionally, many industrial areas, transport hubs, and residential buildings across Ukraine have also been destroyed or badly damaged by Russian attacks. Odesa’s ports, which are vital for exporting grain and metals to the world market, have frequently been targeted in recent months.

Reference: Reuters

Source: Maritime Shipping News