Russia warns of ‘chaos’ in global food market after Ukraine pummels grain terminals

What happened

Three of Russia’s largest grain terminals in the Black Sea port of Novorossiysk have halted operations after being damaged in a massive overnight drone attack by Ukraine. Grain shipments from Novorossiysk are currently impossible because of serious damage to terminal infrastructure. Russia said on Wednesday that Ukrainian strikes on its grain and agricultural infrastructure were pushing up global food prices and exacerbating grain shortages.

Why it matters

Russia and Ukraine account for more than a quarter of global wheat exports, and the attacks come in the middle of this year’s harvest. Wheat futures jumped as much as 4 per cent in Chicago on Wednesday for the biggest intraday advance in three weeks, raising concerns about supplies.