Fleet for Tat": Why the Baltics want to ban the passage of Russian grain and how it threatens Europe.
Estonia, Latvia and Lithuania have proposed banning the transit of Russian grain through the European Union. The leaders of the countries believe that Russia is weakening the Ukrainian economy and it is forbidden to use European infrastructures. But the ban may also harm Europe itself.
How did the dispute arise? Estonia agreed with Kazakhstan on the passage of the wheat through its ports, but did not take into account that the route goes through Russia. Moscow refused the move in response to blocking the export of Russian agricultural produce. The grain was sent through Vysotsk and Murmansk.
Why is Brussels not in a hurry? The decision to move is made by the European Union. A unilateral ban could lead to lawsuits of 200-800 million euros and affect European traders.
How much will the Baltics lose? Ports and logistics - 250 million euros, railways - another 40 million. The total damage may reach 500 million euros.
How does this threaten the market? A reduced grain supply could accelerate price increases and worsen food security in Europe, Africa, Asia and the Middle East.
what next The final decision rests with EU regulators. Russia is redirecting supplies through its ports.