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    World

    Ukraine's grain export deal with Russia nears end as final ship sets sail

    Ukraine's grain export deal with Russia nears end as final ship sets sail

    The final ship permitted to export Ukraine's grain under a deal has departed from the Black Sea port of Odesa, just one day before the deadline for an extension, BBC reports referencing the MarineTraffic website.

    A joint civilian inspection team comprising officials from the Russian Federation, Türkiye, Ukraine, and the United Nations visited the merchant vessel Razoni on 3 August 2022
    Source: UN News

    The TQ Samsun vessel left on Sunday. Russia, however, has refused to extend the UN-brokered deal unless its own demands regarding grain and fertilizers are met. The agreement was reached in 2022 amidst concerns about global food shortages following Russia's invasion of Ukraine.

    Both Ukraine and Russia rank among the top grain exporters globally. MarineTraffic indicates that the Turkish-flagged ship departed Odesa early in the morning of July 16 and is en route to Istanbul, Turkey.

    Thus far, Ukraine has not publicly addressed the issue. Russian President Vladimir Putin announced on July 15 that key provisions, including the removal of obstacles to Moscow's own food exports, had not been fulfilled, suggesting that Russia may suspend its participation in the agreement. Putin stated in a phone call with South African President Cyril Ramaphosa that the primary objective of the deal, which was to supply grain to countries in need, particularly in Africa, had not been realized.

    More than 30m tonnes of grain and other foods have left Ukraine under the deal struck in July 2022
    Source: BBC

    Moscow is also seeking to restore its agricultural payment bank, Rosselkhozbank, to the global Swift payment network. However, the European Union previously stated that it has no plans to reinstate Russian banks that were sanctioned due to Moscow's invasion of Ukraine.

    Turkish President Recep Tayyip Erdogan expressed confidence on Friday that the deal would be extended again after speaking with Putin. The agreement is intended to be renewed for 120-day periods, but in March and May of 2023, Russia agreed to extensions of only 60 days.

    Several days before the last extension, Ukrainian President Volodymyr Zelensky held urgent talks with UN Secretary-General António Guterres. Zelensky emphasized the importance of preventing hunger worldwide, stating, "We are interested in ensuring that there is no hunger in the world."

    Black Sea Grain Initiative shipping route
    Source: BBC

    Following the invasion in February 2022, Russian warships initially blocked Ukrainian exports by sea from Black Sea ports. Under the agreement, over 30mn tonnes of grain and other foodstuffs have been transported from Ukraine via a safe corridor across the Black Sea.

    The UN reports that 47% of Ukraine's grain has been sent to high-income countries like Spain and Italy, 26% to upper-middle-income countries such as Turkey and China, and 27% to low and lower-middle-income countries like Egypt and Sudan. While Putin has criticized Ukraine for not exporting more to developing nations, the UN argues that the grain deal has had a positive global impact by increasing food supplies and subsequently reducing global prices.

     

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    17.07.2023, 01:40   Comments (0)   1044
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