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CASTLE MALTING NEWS in partnership with www.e-malt.com Dutch
18 July, 2023



Barley news Russia & Ukraine: Russia ends participation in Black Sea grain deal

Russia said on July 17 that it was ending its participation in an agreement that had allowed Ukraine to export its grain by sea despite Moscow’s naval blockade, upending a deal that had helped to keep global food prices stable and alleviate one element of the global fallout from the war, The New York Times reported.

Ukraine is a major producer of grain and other foodstuffs, and the United Nations secretary general, António Guterres, said he was “deeply disappointed” by the decision. Millions of people who face hunger, or are struggling, as well as consumers around the world facing a cost of living crisis, will “pay a price,” he said.

“Today’s decision by the Russian Federation will strike a blow to people in need everywhere,” he said.

The Kremlin spokesman, Dmitri S. Peskov, said earlier on July 17 that the agreement had been “halted” until Russia’s demands were met.

“As soon as the Russian part is fulfilled, the Russian side will immediately return to the implementation of that deal,” he said. The decision, he said, was not connected to the attack hours earlier on the Kerch Strait Bridge linking Russia to occupied Crimea, which Russian officials blamed on Ukraine. Ukrainian officials have celebrated the attack but have kept silent on whether it played a role.

Russia has repeatedly complained about the agreement and threatened to pull out of it. On July 17, Russia’s Foreign Ministry issued a statement that emphasized its objections, including what it described as continued Ukrainian “provocations and attacks against Russian civilian and military facilities” in the Black Sea area, and said that the United Nations and Ukraine’s Western allies had not resolved Russian points.

“Only upon receipt of concrete results, and not promises and assurances, will Russia be ready to consider restoring the ‘deal,’” the statement said.

The agreement, known as the Black Sea Grain Initiative and brokered by the United Nations and Turkey, expired on July 17 following the latest in a series of short-term extensions, the last of which was in May.

Turkey’s president, Recep Tayyip Erdogan, said he would speak to President Vladimir V. Putin of Russia about the agreement and signaled hope that it could be revived.

“Despite the statement today, I believe the president of the Russian Federation, my friend Putin, wants the continuation of this humanitarian bridge,” Mr. Erdogan told reporters in Istanbul.

President Volodymyr Zelensky of Ukraine said that Moscow had broken its agreement with the United Nations and with Mr. Erdogan, rather than with his country, given that Ukraine had made a separate deal with the two mediators.

“Even without the Russian Federation, everything must be done so that we can use this Black Sea corridor,” Mr. Zelensky said in remarks provided by his press office, adding that Ukraine was ready to restart shipments if the United Nations and Turkey agreed.

The deal had allowed Ukraine to restart the export of millions of tons of grain that languished for months after the invasion. The agreement also eased shortages that resulted from blockades in the first months of the war; wheat prices fluctuated on July 17, exposing vulnerable countries to the prospect of a new round of food insecurity.

Moscow has complained that Western sanctions continued to restrict the sale of its own agricultural products, and sought guarantees that would facilitate its exports of grain and fertilizers. At one point last year, Russia briefly halted participation in ship inspections that are part of the agreement, only to rejoin in a matter of days.

In an effort to extend the deal, Mr. Guterres sent Mr. Putin proposals last week that he said would “remove hurdles affecting financial transactions” through Russia’s agricultural bank. But a U.N. spokesman, Stéphane Dujarric, said on Monday there were no plans for the two men to speak.

Ukraine has exported 32.8 million tons of grain and other agricultural products since the initiative began, according to U.N. data. Under the agreement, ships are permitted to pass by Russian naval vessels that in effect have blockaded Ukraine’s ports since the start of Russia’s full-scale invasion in February 2022.

Antony J. Blinken, the U.S. secretary of state, speaking to reporters on July 17, warned of a “profound chilling effect” on Ukraine’s food exports and the “safety, security, predictability” it has provided to commercial shippers.

While Ukraine has been able to export grain over land routes, the volumes are much smaller than those that can be moved by sea. The lifting of tariffs and other barriers also frustrated farmers in neighboring countries whose markets were flooded with cheaper Ukrainian grain.

Mr. Blinken said the United States would work with Ukraine to find alternate means of export, including by rail, but added that “it’s really hard to replace what’s now being lost as a result of Russia weaponizing food.”





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