Importance Of Black Sea In Global Markets | Explained

The countries on the west of the sea depend for their energy and oil needs on the countries on the east. Most of the oil from Russia, Kazakhstan and Azerbaijan are exported to eastern countries like Germany and Italy via the Black Sea.

New Delhi: The Black Sea is a major gateway joining Europe and Asia. More than 6 countries touch the shores of the sea most of the oil, energy, steel and agricultural products of the world are traded through it. It has gathered the eyeballs of the world as Russia Ukraine Crisis unfolds.

The countries on the west of the sea depend for their energy and oil needs on the countries on the east. Most of the oil from Russia, Kazakhstan and Azerbaijan are exported to eastern countries like Germany and Italy via the Black Sea. Interestingly, the region around the Black Sea is called the ‘Breadbasket of the World’.

The name has been given because it exports millions of tons of grains and edible oil to the world. Russia is the largest exporter of wheat to the world and Ukraine is the fourth largest. Ukraine is also a big source of steel for Europe. With the crisis deepening, the supply chain is expected to get disrupted.

Black Sea Map: Black Sea connects Europe with Asia

Iron And Steel

Out of the total imports of steel in Europe, Ukraine alone holds the lion’s share of over 10 per cent, according to a report by Bloomberg. With the Russia Ukraine Crisis, the prices of steel are most likely to shoot up.

Major plants are located in Mariupol along the Dnieper River. Major companies which have plants across Ukraine include ArcelorMittal, Metinvest BV and Interpipe. The region also exports pig iron used for the production of high-quality steel.

Wheat

Ukraine and Russia export over 25 per cent of the global wheat supply. The grains are exported via the Black Sea to Europe and then sent to Asia and Africa via road transport. According to Bloomberg, Ukrainian ports of Odesa, Pivdennyi, Mykolayiv and Chornomorsk export nearly 80 per cent of the total grains to the world.

Crude Oil

Crude Oil is perhaps the most important commodity traded via this channel. Some of the biggest buyers and sellers of crude oil are situated around the Black Sea. Russia’s Novorossiysk port exports 1.3 million barrels per day, according to the report.

With the war, Kazakhstan exports will be most impacted. Most of the oil that is exported is done via pipeline from Kazakhstan.

For imports, Romania and Bulgaria import the oil directly via the Black Sea. The oil is then transported to other parts of the world.

Russia is the second-largest exporter of oil and the majority of it is transported via the Black Sea.