Exclusive-Ukraine offers Russia truce in Black Sea as food supply fears mount, source says

By Yuliia Dysa and Daniel Flynn

KYIV, Aug 13 (Reuters) - Ukraine has sent Russia an offer suggesting they both halt attacks on civilian targets in the Black Sea, a source said, after mounting strikes on vessels and ports there raised fears over global food supplies.

The offer to suspend attacks was transmitted by Kyiv via a third party, and Ukraine was still waiting for a response, the source who is familiar with the matter told Reuters.

Both Russia and Ukraine, major players in the world agriculture market, have accused each other of intensified attacks on vessels used for exports.

EU WHEAT PARES GAINS AFTER REPORT

Kyiv was forced to turn to alternative shipment routes when many shipowners halted stops at ports in late July in the southern region of Odesa — a key hub for grain exports - wary after Russian strikes on dozens of ships.

For its part, Russia had to suspend operations at all three terminals at its Black Sea port of Novorossiysk on Wednesday and Thursday after a Ukrainian attack, and will have to cut its grain exports further.

The Kremlin and Russian foreign ministry did not immediately respond to a request for comment on the report of Ukraine's offer.

Before the report, Deputy Russian Foreign Minister Alexander Grushko said Moscow had received no formal Black Sea ceasefire proposal.

"Recently, we have been hearing many calls for various kinds of moratoriums and truces. These ideas are being put forward through various channels, but we have not received any formal proposals," he said, according to Russia's state news agency TASS.

Euronext wheat pared gains in choppy trading on Thursday to come off a two-week high following the Reuters report.

UKRAINE GRAIN EXPORTS TUMBLE

Russia has repeatedly aimed to block Ukrainian port operations and shipments that are key to Kyiv's war-ravaged economy.

In the wake of Russia's 2022 invasion, the United Nations and Turkey brokered a deal allowing Ukrainian grain exports to continue to stave off a looming food crisis. In 2023, Russia refused to prolong the agreement.

After that, Ukraine established another sea route that had remained operational until the latest round of escalation. Alternatives - both rail and via the Danube - are extremely limited, Kyiv says.

On Sunday, Turkey conveyed its concerns about attacks to Russia and Ukraine, saying both should declare a moratorium on attacks in the Black Sea.

The current de facto blockade of Black Sea ports has sent Ukrainian grain exports tumbling 76% year-on-year so far in August, with the agricultural sector warning of vast consequences for the economy should it persist.

(Editing by Andrew Heavens)