ISTANBUL, Turkey – The agreement enabling Ukrainian grain to be exported via the Black Sea, which is essential in alleviating the global food crisis caused by the Russian invasion, has been the subject of intense negotiations to persuade Moscow to renew it.
Scheduled to expire on Monday, the deal, brokered by the United Nations and Turkey and signed by Moscow and Kyiv in July 2022, established a protected sea corridor that allows Ukraine’s agricultural products to reach global markets.
Why is the deal in jeopardy?
On July 4, Russia stated that it saw “no basis” for extending the current agreement, citing alleged obstacles to its own exports of agricultural products.
READ: Russia rejects bank compromise as Black Sea grain deal expiry looms
Moscow has frequently threatened to withdraw from the grain agreement, claiming that Western restrictions on shipping, insurance, and banking are hindering the export of its agricultural products.
On Tuesday, Russia launched a series of drone attacks on grain facilities at a Ukrainian port in the Odesa region, which is home to three key maritime terminals for grain exports.
Can the deal be saved?
Turkey’s President Recep Tayyip Erdogan, who brokered the deal, has emphasized that efforts to extend it are ongoing, with input from both Russian President Vladimir Putin and Ukrainian leader Volodymyr Zelensky.
“Mr. Zelensky is in favor of continuing the initiative, and Mr. Putin has some suggestions,” Erdogan told reporters on Wednesday at the end of a two-day NATO summit in the Lithuanian capital, Vilnius.
The UN Secretary General, Antonio Guterres, supports the removal of obstacles to Russia’s export of fertilizers, another aspect of the July 2022 agreement that Moscow has consistently complained about not being respected. This is due to Western sanctions that are blocking transactions by Russia’s agricultural bank, according to his spokesman.
Guterres sent a letter to Putin on this matter on Tuesday.
READ: UN scrambles to save Black Sea grain deal, with EU help, ahead of Monday deadline
Has the deal been effective?
By ensuring the security of maritime cargo traffic in the Black Sea, as well as inspecting shipments to counter the illicit transport of weapons, the agreement has facilitated the export of nearly 33 million metric tons (MT) of grain since it came into effect on August 1, 2022, predominantly wheat and maize.
The agreement has helped stabilize prices, which had skyrocketed following Russia’s invasion of Ukraine, and has prevented hunger and famine in countries heavily reliant on food imports.
The top importers are China at 7.75 million MT, followed by Spain at 5.6 million MT, and Turkey at 3.1 million MT, according to the coordination center established under the agreement.
The deal has also enabled the World Food Program to provide 725,000 MT of food to countries experiencing crises, such as Afghanistan, Ethiopia, Kenya, Somalia, Sudan, and Yemen.
“A lack of food supplies has far-reaching consequences for the lives of millions of people, particularly the poorest,” said the UN.
What is the current situation?
Shipments have slowed down ahead of the agreement’s expiration, with only seven ships leaving the Ukrainian ports of Odesa and Chernomorsk between July 2 and 13. This is significantly lower than the daily average of ships leaving last October.
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Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
Denial of responsibility! Samachar Central is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
