Sporadic Russian missile attacks have become part of everyday life in Odesa, Ukraine’s main Black Sea port city. When I asked local residents if I’d need to find a bomb shelter, they simply laughed. Yet overnight, sirens repeatedly blared out, and the night after I left, nine civilians were killed and eight injured in an attack targeting port infrastructure.
Odesa’s ports are Ukraine’s primary link to global markets and a lifeline for its economy. Located on the northwestern coast of the Black Sea, Odesa and its two neighbouring ports, Chornomorsk and Pivdennyi, collectively form the Greater Odesa port system, a vital hub for Ukraine’s exports, particularly its agricultural products.
Russia’s campaign to target this infrastructure since the opening days of the war has brought Odesa repeatedly under attack. Even though it is hundreds of kilometres from the fighting in the east, one resident still told me: "Odesa is called the frontline because of the targeting of its port by Russia.”
Signs of war
In this historic port city, reminders of the war are everywhere. Blue and yellow Ukrainian flags hang on walls and gates, posters urge Ukrainians to victory, while plaques commemorate those lost to the conflict. The men they honour, born in the 1980s, 1990s and early 2000s, were casualties of Russia’s aggression dating back to 2014 as well as during the full-scale war that broke out in February 2022.
War damage is centred on the port and industrial areas. Yet, there are some marks on the elegant streets of the city centre, known as the “pearl of the Black Sea”. Among the pastel painted Mediterranean style buildings are a few surrounded by hoardings, with sky showing through the broken windows on their upper floors.
Museums and galleries are boarded up, to safeguard their artefacts from potential damage. Several, including World Heritage properties such as the Odesa Archaeological Museum, the Odesa Maritime Museum and the Odesa Literature Museum have already been hit by Russian attacks. In 2023, the city was added to UNESCO’s World Heritage List.
From Prymorskyi Boulevard, which runs along the edge of the historic centre, cranes in the port — now operating at around half capacity — can be seen through the yellowing leaves of the trees. The small funicular that used to carry people up and down next to the famous Prymorskyi Stairs (better known as the Potemkin Stairs) is closed, with the plastic tape surrounding it flickering in the breeze. As in the city centre, wooden panels cover the windows of the theatre and museums, but the pillars in front of the Odesa city hall is painted in the blue and yellow of the national flag.
Ports under attack
Before the invasion, the port handled millions of tonnes of diverse cargo monthly. The closure of the port due to Russia’s blockade was thus a severe blow to Ukraine’s economy. It also threatened world food security, given the importance of the country’s grain exports to parts of the world such as North Africa and the Middle East.
“These three [Greater Odesa] ports played an extremely important role not only for Ukraine but for the world food market,” the deputy head of Ukrainian Sea Ports Authority (USPA), Dmitry Barinov, said in a recent interview with bne IntelliNews.
The port came back into action with the signing of the Black Sea Grain Initiative in July 2022 to enable maritime food and fertiliser shipments from Ukraine. More recently, after the expiry of the initiative, Ukraine has set up its own maritime corridor, which allows safe passage for vessels to and from Odesa.
Since its launch in September 2023, over 2,700 ships have navigated this route, transporting essential goods to 48 countries. Although no major incidents have occurred on this corridor, the threat of attacks remains ever-present.
“We used to handle a long list of goods — containers, wood, steel products — but now, the focus is on foodstuffs and iron ore.”
As related by Barinov, the port’s operations are frequently interrupted by Russian air raids and missile attacks. “Unfortunately, this is our reality right now,” he said. “When there is an air raid alert or drones or missiles coming over, we have to stop work and move our employees to shelters.” Despite these interruptions, the ports continue to repair damage and resume operations swiftly.
“We understand our responsibility for the Ukrainian economy and the world’s food security, so we try to repair everything and resume work as soon as possible,” he added.
Economic struggles
Outside the port, Odesa’s high-end stores, markets, malls and Western retail chains are very much open, as are the supermarkets and coffee shops. At My Butter, not far from the Prymorskyi Stairs, there’s a sophisticated electronic ordering system offering a modern take on traditional Ukrainian dishes and an extensive range of coffees to a smartly dressed brunch crowd.
Yet, many ordinary Ukrainians have been struggling with rising prices since the start of the war. After a dip in inflation in early 2024, the inflation rate accelerated to 8.6% in September and has continued to rise in October; the National Bank of Ukraine (NBU) said at the end of October it believes inflation has not yet peaked.
Viktoria, a marketing professional in her early 30s, told me that rising costs, including of food products, are the main worry for many people. Another difference, disturbing for some, has been the change in culture in some of Ukraine’s western cities that came with the mass exodus of women and children to safer countries abroad, and the arrival of thousands of internally displaced people from the east.
With the upheavals caused by the invasion and the mobilisation of Ukraine’s younger male population to fight, local businesses have had to adapt urgently to survive. Those in Odesa were particularly badly hit by the temporary closure of the port.
“Businesses in Odesa are facing the same challenges [as those across Ukraine], but of course the blockade of the port affects them. Odesa was always a port city, and a lot of the businesses were oriented to that. Now businesses have to reimagine what to do next,” Maria Gutsman, team leader for inclusive development, recovery and peacebuilding at the United Nations Development Programme (UNDP) Ukraine, said in an interview with bne IntelliNews in October.
Companies have also been hit by labour shortages, given the departure of men to the front and millions of other Ukrainians abroad.
“The full-scale invasion has dramatically changed our labour market,” said Mykyta Koreniev, director of the Odesa Oblast State Employment Service (SES), in an interview with bne IntelliNews.
“Men are mobilised and have to serve in the armed forces, and a lot of people left Ukraine because of the war. Now we have severe deficit of skilled workers, mainly in traditionally male professions.”
Rebuilding amid uncertainty
The future of Odesa and its ports remains tied to the fate of Ukraine in the ongoing war. It’s still unclear what the impact of Donald Trump’s re-election to the US presidency will bring; there is speculation it may lead to a quicker end to the war, but on worse terms for Ukraine.
Yet lives — and business — goes on. Despite the ongoing threats, the Ukrainian Sea Ports Authority intends to expand port operations beyond foodstuffs and iron ore as conditions stabilise, as outlined by USPA’s Barinov. Italy’s Fincantieri has announced plans to rebuild the state-owned shipyards in Odesa, potentially making it the largest foreign investor in the country.
Plans for a new industrial park in the Odesa region also aim to boost the local economy further, generating an estimated 500 new jobs in metalworking and manufacturing. This industrial park is part of Ukraine’s broader economic recovery strategy, as reconstruction efforts continue. Odesa is laying the groundwork for a future where it can once again be a thriving port city on the Black Sea, even as the war continues to loom large.