Ukraine’s Ministry of Renovation and Infrastructure said on June 1 the United Nations (UN)-brokered Black Sea grain export deal had been halted again because Russia had blocked registration of ships to all Ukrainian ports, according to a Reuters report.
Ukrainian officials have said since mid-April that Russia has “unreasonably restricted” the work of the Black Sea grain deal, according to the report.
Russia agreed last month to a two-month extension of the Black Sea Grain initiative brokered by the UN and Turkey last July to help tackle the food crisis aggravated by Russia’s invasion of Ukraine, which is a leading global grain exporter (GM May 19, p. 29).
However, Russia, which has previously denied any wrongdoing, has said it will cease the initiative unless an agreement is reached aimed at overcoming obstacles to Russian grain and ammonia and other fertilizer exports being fulfilled. Moscow has been urging all parties to the grain deal to unblock the transit of Russian ammonia so it can be exported via the ammonia pipeline that runs from Togliatti in Russia through Ukrainian territory to the Ukrainian Black Sea port of Pivdennyi (formerly known as Yuzhny).
Moscow is also demanding that Russia’s Agricultural Bank re-gain access to the international “SWIFT” payment network, which has been prohibited under European Union and US sanctions.
For its part, Kyiv has said it would consider allowing Russian ammonia to transit its territory for export on the condition that the Black Sea grain deal is expanded to include more Ukrainian ports and a wider range of commodities.
The UN is trying to save the deal, and has proposed that Kyiv, Ankara, and Moscow start preparatory work for Russian ammonia to transit Ukraine, and also wants parallel talks to be held on widening the Black Sea deal to include more Ukrainian ports and other cargoes.
Ukraine and Turkey have accepted the UN proposal, but as of Green Markets’ press time Russia has yet to respond, according to a Reuters report.
According to an Interfax report on June 1, Kremlin spokesperson Dmitry Peskov said the matter is “on the agenda” and is still being discussed.