The relationship between Russia, Ukraine, and Ecuadorian Banana

The conflict between Russia and Ukraine has been affecting the Ecuadorian banana industry. In 2021, Russia was the largest export destination for Ecuadorian bananas, holding 20% of the total exports.

According to the Central Bank of Ecuador (BCE), Russia imports 79-84 million boxes of Ecuadorian bananas every year, and in 2021, the country imported 83 million boxes. Russia has become a significant market for the Ecuadorian banana industry, which led to the establishment of a direct commercial route to Saint Petersburg, where Ecuador exports 1.5 to 2 million banana boxes weekly.

Ukraine has a smaller market share of Ecuadorian banana exports. According to BCE, yearly, Ukraine imports 6-10 million Ecuadorian banana boxes and in 2021, the country imported about 9 million boxes. Ukraine’s Ecuadorian banana exports market share has increased from 1.64% in 2018 to 2.58% in 2021.

Together, both markets hold about 23% of the total export market of Ecuadorian bananas, a share that is highly affected by the current conflict between the two countries.

How did the Russia-Ukraine conflict influence?

The conflict between Russia and Ukraine is causing many negative effects on the Ecuadorian banana industry.

Issues with freight logistics are impeding the delivery of bananas, and many other products, to both Russia and Ukraine. During the first week of March, Ecuadorian banana exports that were already at sea on their way to both countries had to be rerouted to alternative Eastern and Mediterranean markets.

Many Russian ports where Ecuadorian bananas are delivered are still in operation, which allowed for 65% of already shipped bananas to be delivered during the first weeks of the conflict. On the other hand, the Odesa port in Ukraine, which receives most of the Ecuadorian banana exports, is currently out of operation, preventing product delivery and affecting the industry since it cannot receive the usual 180,000 boxes of Ecuadorian bananas weekly.

In addition, many of the biggest shipping companies have suspended operations in the conflict area, complicating the delivery of any product to either Russia or Ukraine. European regulations are requiring shipping companies to conduct container revisions, making companies take alternative routes or cancel those routes. This creates shipping delays, which are not an option for bananas since they are highly perishable products that are not suitable for storage or long transits.

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