Chinese Trader Cofco’s Sunflower Oil Plant Near Mariupol Damaged

(Bloomberg) -- Fighting around Mariupol has damaged a Cofco Corp. sunflower seed crushing plant in the Ukraine, which produces almost 10% of the country's supply, according to a person familiar with the matter.

The plant, the Chinese trader's only one in the country, was damaged during Russia's attack on the port of Mariupol in the first half of March, according to the person, who asked not to be named because the information isn't public.

While the extent of the damage isn't known, a recent satellite image from Planet Labs PBC shows several holes in the two main buildings. The holes aren't visible in an image from earlier in the year. The main structure and silos appear to be intact. The most recent image also shows dozens of bomb craters around the facility as well as some nearby houses that have been destroyed.

Russia's attack on Ukraine has crippled shipments of grain and sunflower oil from the country, which accounts for about half of global shipments. That's driven up global prices, threatening to worsen food inflation and hunger in some parts of the world.

Ukraine President Volodymyr Zelenskiy said on Thursday that Russian forces are deliberately trying to damage Ukraine's agriculture sector. Troops have placed land mines in fields and agricultural equipment has been destroyed, he told Dutch lawmakers. A major frozen-food warehouse near Kyiv was also destroyed in a fire during shelling in March, and grain-export facilities and steel plants have seen damage at ports.

The crushing plant, located north of Mariupol, was built in 2012. The facility can produce 1,500 tons of vegetable oil per day, and includes storage and a rail terminal connecting the plant to Cofco's export terminal.