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There are apprehensions that Russia may not extend a U.N.-brokered deal that allows grain to flow from Ukraine to various destinations dependent on food imports. Reports indicate that ships are no longer heading to the war-torn country’s Black Sea ports, dwindling food exports
There are apprehensions that Russia may not extend a U.N.-brokered deal that allows the grain to flow from Ukraine to various destinations dependent on food imports. Reports indicate that ships are no longer heading to the war-torn country’s Black Sea ports, dwindling food exports.
Turkey and the U.N. negotiated the breakthrough accord last summer to ease a global food crisis. It came with a separate agreement to facilitate shipments of Russian food and fertiliser. Moscow insists that has not been allowed. However, data shows that Russia has been exporting huge quantities of wheat.
Russia twice has renewed the deal for 60 days against the 120 days outlined in the agreement. The U.N. and others are striving to keep the fragile deal intact. Ukraine and Russia are major suppliers of wheat, barley, vegetable oil and other food products to countries in Africa, the Middle East and parts. The agreement has allowed Ukraine to ship 32.8 million metric tons of grain, more than half of it to developing nations. This has helped cooling the food prices in countries that relied on imports. But food prices still rule high in some countries indicating that reliefs have not reached the common man.
The amount of grain leaving Ukraine already has dropped. The reason is that Russia slowed joint inspections of ships by Russian, Ukrainian, U.N. and Turkish officials. Russia also has refused to allow more vessels to join the Black Sea Grain Initiative. Average daily inspections have fallen from a peak of 11 in October to just over 2 last month, it is alleged. Consequently, grain exports declined from a high of 4.2 million metric tons in October to 1.3 million in May. They rose to 2 million in June as shipment sizes grew, reports say.
Moscow is seeking the lifting of restrictions on the Russian Agricultural Bank, as well as movement on its ammonia, a key ingredient in fertiliser, to a Ukrainian Black Sea port. But the ammonia pipeline has been damaged in the war, according to the UN.
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Russia, however, has increased its wheat exports to the highest levels in years following a large harvest. Shipments went from 33 million metric tons in 2021 to 44 million metric tons last year to expectations of 46 million this year, according to S&P Global Commodity Insights. Meanwhile, Ukraine’s shipments have fallen by around 60% because of the war, from 19 million tons in 2021 to predictions of about 7 or 8 million tons this year.
