By Maytaal Angel

LONDON, (Reuters) – Coffee traders have been scrambling for a way to divert shipments heading to Russia and Ukraine after trade flows collapsed due to Western sanctions imposed upon Moscow and Kyiv.

Russia is fourth in coffee imports after Japan, USA and Europe.

“Trade flows have slowed to a crawl. This is a realistic possibility. This is a simple matter,” said an internationally renowned coffee trader based in Geneva.

Together, Russia and Ukraine account for almost 4% of the global coffee consumption.

Both countries import large quantities of robusta coffee beans. These coffee beans can be used to make instant espresso. They are an affordable alternative to the smoother, more flavorful arabica.

The top three largest container shipping lines in the world – MSC and Maersk – temporarily suspended cargo shipments to Russia. Meanwhile, Ukraine’s ports were closed following Russia’s invasion.

Although some shipping lines claim they will still ship to Russia, the devaluation of the ruble has effectively frozen this market. An international coffee trader based in Europe said Russian roasters couldn’t afford to purchase.

After the invasion, more than 30 percent of the Rubel has been lost against the Dollar. International roasters are still in operation and fear collapse because local prices have almost tripled.

“We anticipate a substantial drop in consumption (in Russia and Ukraine). In a note Rabobank stated that the combination of high prices and war will lead to lower demand.

Geneva-based trader stated that he was unable to get in touch with his Ukraine buyers. He had to unilaterally decide on cancellations and redirections of shipments.

Vietnam’s largest exporter of robusta coffee, three exporters from the country said that there had been virtually no Russian shipments last week. One exporter stated that he is working with Russian clients in order to cancel any contracts.

The exporter who was based in Ho Chi Minh City said that “based on the current state and the recommendation of the government, agricultural exports into Russia, including coffee,” will drop sharply.