OREANDA-NEWS. August 9, 2010. Despite the absence of an official ban on grain exports from Ukraine, three large unnamed traders claim that the State Customs Service blocked their vessels from leaving port on Friday, which has already caused nearly USD 1 mln in losses since late last month. The State Customs Service denied the reports.

Concorde Capital: the said actions are preventing domestic grain traders from fulfilling contractual obligations, and in particular publicly-listed Kernel (WSE: KER PW), responsible for nearly 10% of the annual domestic grain exports.  Given the absence of an official export ban and the forecasted grain harvest, which is sufficient to cover domestic consumption, we see this dispute as temporary, though it is likely to have a material effect on Kernel’s financials in fiscal 1Q11.