Saudi grain giant has cut back on barley imports from the Black Sea region

United Group, Saudi Arabia’s largest importer of barley, is halting imports from the Black Sea region due to Russia’s war against Ukraine. Constant disruptions in logistics and rising prices have forced the grain giant to shift its purchases to more stable markets, particularly Argentina.

This was reported by Bloomberg.

The last ship from the Black Sea chartered by United Group arrived in Saudi Arabia about two weeks ago. The company’s CEO, Abdulaziz Al-Dharraab, noted that Argentina is likely to account for about 30% of the company’s purchases this year, which is 10% more than last year. The importer also plans to focus on the European Union. 

United is also exploring opportunities to purchase grain in Australia and the Baltic states.

The company remains the largest importer of barley in Saudi Arabia, purchasing millions of metric tons of this grain annually. Thanks to the scale of these purchases, the country itself ranks second in the global list of importers.

Earlier, the Cabinet of Ministers of Ukraine eased foreign exchange control rules for exporters of key agricultural commodities. This decision compensates for logistical challenges caused by systematic shelling of port infrastructure and civilian vessels in the Black Sea region.

Юлія Калабайда