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    World

    Erdogan and Putin to discuss reviving Ukraine grain deal amid global food crisis

    Erdogan and Putin to discuss reviving Ukraine grain deal amid global food crisis

    Turkish President Tayyip Erdogan aims to persuade Russian President Vladimir Putin to rejoin a Ukraine grain export agreement that eased a global food crisis when they convene in Russia's Sochi on September 4, Reuters reports.

    The cargo ship Mehmet Bey waits to pass through the Bosphorus Strait off the shores of Yenikapi during a misty morning in Istanbul, Turkey, October 31, 2022.
    Source: Reuters

    Russia withdrew from the deal in July, a year after it was brokered with UN and Turkish mediation. Russia cited obstacles to its food and fertilizer exports and a lack of Ukrainian grain shipments to countries in need as reasons for its withdrawal.

    The talks between the two leaders, scheduled to take place in the middle of the day, Moscow time, will address the current status of the grain deal. Erdogan's chief foreign policy and security advisor, Akif Cagatay Kilic, expressed cautious optimism about the discussions.

    The original goal of the agreement was to facilitate the export of Ukrainian grain to global markets through the Black Sea, thereby alleviating a worldwide food crisis exacerbated by Russia's full-scale invasion of Ukraine in February the previous year.

    Russia and Ukraine are significant players in various agricultural markets, including wheat, barley, maize, rapeseed, rapeseed oil, sunflower seed, and sunflower oil. Putin has indicated that Russia could rejoin the grain agreement if the West fulfills a separate memorandum signed with the UN simultaneously to facilitate Russian food and fertilizer exports.

    Although food and fertilizer exports from Russia are not subject to Western sanctions imposed after the invasion of Ukraine, Moscow has argued that restrictions related to payments, logistics, and insurance have impeded shipments.

    Prior to the meeting between Erdogan and Putin, Ukrainian officials reported an overnight air strike by Russia on one of Ukraine's major grain exporting ports. A 3.5-hour drone attack on the Danube River port of Izmail in Ukraine's Odesa region targeted warehouses and production facilities. Debris from the drones caused fires in several civilian infrastructure buildings, according to the governor of the Odesa region.

    UN Secretary-General António Guterres disclosed that he sent a set of concrete proposals to Russian Foreign Minister Sergei Lavrov with the intention of reviving the agreement. One of Moscow's primary demands is the reconnection of the Russian Agricultural Bank to the SWIFT international payments system. In June 2022, the EU disconnected the bank as part of comprehensive sanctions imposed in response to the invasion.

    Maria Zakharova, a spokeswoman for the Russian foreign ministry, stated that certain elements implied by the agreement had not been implemented previously. Russian state television, in its coverage of the Erdogan meeting, emphasized the necessity of fulfilling commitments made to Russia.

    Russia has also been in discussions regarding a Putin initiative to supply up to 1mn tons of Russian grain to Turkey at reduced prices for subsequent processing at Turkish facilities and shipment to countries in dire need. Erdogan is a crucial mediator for Russia, and Putin personally respects him. This meeting marks their first in-person encounter since October.

    In anticipation of the meeting on September 4, U.S. wheat prices closed lower on September 1, as markets weighed the situation of tight global stocks against the prospects of substantial Russian wheat production and the revival of the grain agreement.

     

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    04.09.2023, 14:43   Comments (0)   1165
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