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Ukraine's Black Sea grain deal was extended for another two months in what UN Secretary-General Antonio Guterres hailed as "good news for the world", a day before Russia pulled out of the pact due to obstacles to its exports of grains and fertilizers. Turkish President Tayyip Erdogan announced the extension in a televised speech and was later confirmed by Russia, Ukraine and the United Nations.
The flow of ships through the corridor had stopped in recent days, with the agreement expiring on Thursday. “The continuation is good news for the world,” the UN’s Guterres told reporters on Wednesday.
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The United Nations and Turkey brokered the Black Sea deal for an initial 120 days in July last year to help address a global food crisis that has been worsened by Moscow's invasion of Ukraine, one of the world's top grain exporters.
Moscow initially appeared unwilling to extend the pact unless a list of demands regarding its own agricultural exports were met. “This is a chance to help ensure global food security, not in words, but in actions. Firstly, to help countries most in need,” said the Russian Foreign Ministry, confirming the extension. “Our principled assessment of the July 22, 2022 Istanbul agreements has not changed and distortions in their implementation must be corrected as quickly as possible.”
While Russian food and fertilizer exports are not subject to Western sanctions imposed after the February 2022 invasion of Ukraine, Moscow says restrictions on payments, logistics and insurance pose a barrier to shipments.
Russia's UN Ambassador Vassily Nebenzia said the deal was extended because "we have not yet given up hope that the problems we are raising will be resolved."
UN chief Guterres said outstanding issues remained but that representatives from Russia, Ukraine, Turkey and the United Nations would continue to discuss them. “Looking ahead, we hope that exports of food and fertilizers, including ammonia, from the Russian Federation and Ukraine can reach global supply chains safely and predictably,” Guterres said.
The United States rejected Russia's complaints. US Ambassador to the UN Linda Thomas-Greenfield said last week: “It is exporting grain and fertilizer at the same levels, if not higher, than before the full-scale invasion.”
EXTENSION WELCOME BY UKRAINE
Ukraine also welcomed the extension, but a senior official said Russia cannot sabotage the deal and must stop using food “as a weapon and blackmail.” “We welcome the continuation of the Initiative, but emphasize that it must work effectively,” Deputy Prime Minister Oleksandr Kubrakov said on Facebook.
The US State Department welcomed the extension of the agreement, but deputy spokesman Vedant Patel added: “We don't need to remind Moscow every few weeks to keep its promises and stop using people's hunger as a weapon in its war against Ukraine.”
The extension helped send grain prices tumbling on Wednesday, with Chicago wheat and corn futures falling 3.4%. Earlier on Wednesday, the last remaining ship registered to travel through the corridor had left a Ukrainian port. UN data showed that the DSM Capella had left the Ukrainian port of Chornomorsk carrying 30,000 tonnes of corn and was on its way to Turkey.
Officials from Russia, Ukraine, Turkey and the UN form a Joint Coordination Center (JCC) in Istanbul, which implements the Black Sea export agreement. They authorize and inspect ships. No new vessels have been authorized by the JCC since May 4th.
Authorized ships are inspected by JCC officials near Turkey before traveling to a Ukrainian port on the Black Sea via a maritime humanitarian corridor to collect their cargo and return to Turkish waters for a final inspection.
In an excerpt from a letter seen by Reuters last month, Russia told its JCC colleagues that it would not approve the participation of new ships in the Black Sea deal unless transits were completed by May 18 – “the date expected closing.” He said this was “to avoid commercial losses and prevent possible security risks” after May 18.
Some 30.3 million tonnes of grain and food were exported from Ukraine under the Black Sea agreement, including 625,000 tonnes on World Food Program vessels for aid operations in Afghanistan, Ethiopia, Kenya, Somalia and Yemen.
Source: Seane Lennon | agrolink
