Russia and Ukraine strike vessels in Black Sea, wheat prices jump
Escalating Conflict in the Black Sea and Its Impact on Global Wheat Markets
Missile and Drone Attacks on Vessels
MOSCOW/KYIV, July 16 (Reuters) - Ukraine and Russia launched missile and drone attacks on Thursday on vessels in the Black Sea and the Sea of Azov, stepping up hostilities in a zone vital for grain exports that have triggered a rise in global wheat prices.
Ukraine's military said it struck at least 11 Russian vessels, while Russia's defence ministry said its forces hit a maritime vessel and a speedboat of the Ukrainian armed forces while they were en route to ports in the Odesa region.
Ukraine's drone forces commander Robert Brovdi said on Telegram that the latest targets included five oil tankers in the Black Sea and Sea of Azov, as well as a gas tanker, three dry cargo vessels, and two tugboats in the Black Sea.
He said the total number of vessels struck by Ukrainian forces this month had now reached 147.
Russia's defence ministry said its forces had also struck military and industrial facilities in Kyiv involved in the production and storage of medium- and long-range drones as well as infrastructure facilities at the ports of Odesa and Pivdennyi.
Reuters could not immediately verify the battlefield accounts of either side.
Expansion of Ukrainian Targets
Ukraine has been hitting vessels in the Sea of Azov since early July. Brovdi said on Wednesday that Ukraine had also begun targeting Russian ships in the Black Sea, as Kyiv presses on with its campaign to disrupt logistics for Moscow's military and isolate Russia-annexed Crimea.
Ukraine has also been hitting Russian energy infrastructure, including oil refineries and tankers, to undermine Moscow's capacity to continue waging a war now in its fifth year.
Russian Response and Port Strikes
Russia has intensified strikes on Ukraine's deepwater Black Sea ports in the Greater Odesa area, which handle much of the country's grain and other cargo and are vital to its wartime economy.
Shipping Restrictions and Grain Export Challenges
SHIPPING HEAVILY RESTRICTED
The Ukrainian attacks have forced Russia, the world's top grain exporter, to limit shipping in the Sea of Azov — a route that handles about a quarter of its grain exports, sources told Reuters. Shipping remained restricted on Thursday, they said.
Two of Ukraine's three Black Sea ports were operating normally on Thursday morning while the port of Chornomorsk had sharply reduced its grain intake, the Ukrainian state railway Ukrzaliznytsia said.
It said 901,300 metric tons of grain had been sent toward the ports since the start of July, "which is, of course, less than last month".
Casualties and Regional Impact
Ukrainian officials said Russian ballistic missiles struck at least two districts in Kyiv early on Thursday, triggering fires and killing two people.
Authorities in at least three Russian regions also reported deaths and injuries inflicted by Ukrainian drone and rocket strikes overnight.
Wheat Prices Rally Amidst Conflict
WHEAT PRICES RALLY
On Wednesday, European wheat prices jumped 7% as the escalating attacks in the Black Sea raised concerns over key grain export routes, with traders expecting some demand to shift to European Union supplies.
Benchmark September milling wheat on Paris-based Euronext ended the daytime trading session 7% higher at €231.75 ($265) per metric ton, a price not seen since February 2025.
Chicago Board of Trade wheat futures surged 5% on Wednesday, though they pared their gains in early Thursday morning trade.
Impact on Ukrainian Grain Exports
Ukraine has lost about a third of its capacity to export grain via its Black Sea ports due to the Russian missile and drone attacks, the country's main farmers' union said.
Calls for Restoration of Navigation
Ukrainian Foreign Minister Andrii Sybiha called for restoration of the freedom of navigation in the Black Sea.
"This is also a fundamental issue for Ukraine. It is vital, as the Black Sea is the main route for the export of Ukrainian goods," he told reporters.
(Reporting by ReutersEditing by Gareth Jones)
