Key facts
- Ukraine claims its drones struck 21 Russian tankers and seven other vessels in the Sea of Azov.
- The commander of Ukraine's Unmanned Systems Forces stated that traffic through the Kerch Strait has been halted.
- Russia has reportedly suspended navigation through the Don-Azov Canal, a key waterway.
- Russian border guards have stopped accepting applications for passage through the Kerch Strait.
- Wheat futures rose as much as 4% on concerns over potential disruptions to Russian grain exports.
Ukraine reported a significant overnight drone operation in the Sea of Azov on July 11, claiming to have struck 21 Russian tankers and seven other vessels. Robert "Madyar" Brovdi, commander of Ukraine's Unmanned Systems Forces, stated that the operation resulted in 73 successful strikes and suggested that traffic through the Kerch Strait, which connects the Sea of Azov to the Black Sea, has been halted.
According to Brovdi, the targeted tankers are part of Russia's "shadow tanker fleet" used to transport oil and petroleum products while circumventing international sanctions, thereby financing its military actions. The other vessels, including tugboats and dry cargo ships, are said to support Russia's military logistics and cargo transportation. The General Staff of Ukraine confirmed the strikes, noting that the full extent of the damage is still being assessed.
These Ukrainian strikes appear to have coincided with disruptions to Russian shipping. Reuters reported on July 10, citing sources in the Russian grain export industry, that Russia had temporarily suspended navigation through the Don-Azov Canal. Shipping companies were reportedly informed by Russian border guards that applications for passage through the Kerch Strait would no longer be accepted starting July 10, with no specified end date for the restrictions.
Market analysts estimate that approximately one-quarter of Russia's wheat exports typically transit through the Sea of Azov. In response to the potential disruptions, wheat futures on the Euronext exchange rose as much as 4% on July 10, reaching a six-week high.