Ukraine says it is preparing sanctions over alleged grain shipments from occupied territory, escalating a diplomatic dispute with Israel.

Ukraine has escalated its dispute with Israel over alleged grain shipments from Russian-occupied Ukrainian territory, with President Volodymyr Zelenskyy saying sanctions are being prepared.

Reuters and AP reported that Ukraine has now moved beyond a protest note and is preparing a sanctions package targeting people and entities it says are involved in the trade. Ukraine says it has already summoned Israel’s ambassador and delivered a formal protest over the shipments.

The latest reporting says another vessel carrying the disputed grain is at or near an Israeli port and preparing to unload. Ukraine says the grain was taken from occupied territory and moved out through concealed transfers, including ship-to-ship activity.

Israel continues to reject the accusation, saying Ukraine has not provided sufficient evidence. AP reported that Israeli officials say the claim lacks substantiation, while earlier reporting said the vessel had not yet completed documentation.

The dispute has become a broader diplomatic fight over how Israel should handle cargo Ukraine says is stolen. For Kyiv, the issue is not only the shipment itself but also what it sees as a pattern of imports from occupied territory.

The next key question is whether the vessel unloads and whether Israel responds formally to the sanctions warning. Ukraine’s move suggests the disagreement is now entering a more confrontational phase.

Revision note

Updated with sanctions threat and vessel update.