Thank you very much.
First of all, I would like to say that it's my honour and pleasure to address the committee of the House of Commons of Canada.
Let me start with a number of facts that will illustrate the role of Ukraine as a global food supplier.
Ukraine is a major exporter. We have always been among the countries leading in global food supply; we are the fifth country in wheat exports, fourth in maize, third in barley and the first in sunflower oil. Additionally, our state has been one of the top producers of nuts, rapeseeds, peas, millet, wheat flour, honey and other agricultural foods.
Last year Ukrainian grains fed more than 500 million people. This year they put a billion in danger. The unjustified aggression of Russia against Ukraine changed the order of things for good. Every day it causes irrevocable harm to the agriculture sector in Ukraine and undermines global food security.
The war has already negatively impacted the export potential of Ukraine. The seaports remain blocked by Russia while the water areas of the Black Sea remain mined by Russia as well. Currently, more than 20 million tonnes of grain are stacked in Ukraine forcing us to seek alternative ways to export our agricultural goods through the western borders.
Today, thanks to our partners, we have significant progress in exporting grains to the European Union compared to last month, but the numbers are still below the pre-war level. Most goods have been exported through water transport—river ports and ferry crossings—but the capacity of these facilities is still low for a stable global supply. Moreover, Ukraine may face additional problems soon due to the Russian attacks on the buildings to store harvest and the lack of the funds we would have gained by selling the goods abroad.
In addition, the Russian army blatantly steals Ukrainian wheat and grain in the temporarily occupied territories of Ukraine and illegally transports the goods to Russia. The losses of farmers are estimated at more than half a million tonnes and more than $125 million. In the Luhansk region, Russian soldiers force Ukrainian farmers to carry out planting and then appropriate the harvest.
The head of the UN said recently that the Russian war against Ukraine has resulted in disruptions in food affecting 1.7 billion people worldwide. The consequences may be disastrous. According to the FAO's latest forecast, the war in Ukraine could increase chronic undernourishment by an additional 18.8 million people by 2023.
According to the Ukrainian government, the spring sowing area is 25% less than the previous year. The main crops that were sewn are maize, soy, sunflower, millet, buckwheat, oats and sugar beet. So today Ukrainian farmers think about how to export, not only the last year's harvest, but the upcoming as well.
Indeed, the 2022 planting season has been the most difficult in the history of independent Ukraine because of the logistical issues. Ukrainian farmers face an acute lack of fuel, fertilizers and plant protection products. The government has reported cases of international destruction or appropriation of agricultural machinery and equipment by the Russian army in the occupied regions of Ukraine.
Russia purposefully attacks grain silos, warehouses of fertilizers, farm enterprises and other infrastructure trying to aggravate the current humanitarian crisis. Two months ago Russian forces shelled bread plants in the Kyiv and Kharkiv regions. In the liberated areas, the invaders mined agricultural fields.
Steadfast work of the agricultural sector is crucial for restoring Ukraine’s economy. For this reason, going through the 2022 planting was one of the most important tasks of the Ukrainian government and farmers. The season was relatively successful, thanks to the credits offered to the agricultural sector. More than 13,000 Ukrainian farmers received more than 38 billion hryvnias, which is about one billion euros of credit in total. Eighty per cent of that amount was attracted through portfolio guarantees.
Exports improved a bit compared with March of this year, yet no visible alternative to the previous volumes of Ukrainian global food export is seen today.
The Russian invasion of Ukraine has had a significant negative impact—