In 2022, despite the war, thanks in part to the food agreement, Ukraine will be able to export more than 38 million tons of grain and generate revenues of more than 8 billion euros.
(Photo: dpa)
Kyiv/Moscow Russia has halted a deal to export Ukrainian grain through the Black Sea. Kremlin spokesman Dmitry Peskov said on Monday that Moscow would resume fulfilling the agreement once all requirements for Russian grain exports had been met, Russian state news agency TASS reported.
After numerous extensions, the agreement with Russia and Ukraine is officially in place until Monday evening (11:00pm CET).
Peskov denied that Monday’s attack on the Crimean bridge would affect the future of the food deal. “These are two unrelated events. You know, even before the terrorist attack, President Putin had expressed his position,” he said on Monday.
Russian President Vladimir Putin said there was no basis for extending the agreement.
That halted seaborne shipments of millions of tonnes of Ukrainian grains, mainly corn and wheat, though exports are important to poorer countries.
Putin blocked extension until last
Kremlin Chairman Vladimir Putin blocked the extension until the end. He believes that the promises made to Russia during the agreement have not been fulfilled. On Thursday, Putin talked about Russia’s possible suspension of participation in the agreement until it fulfills its commitments.
In return, Moscow demanded the lifting of sanctions on its fertilizer and food exports, such as insurance, freight and financing. Specifically, Russia demanded that its National Agricultural Bank be exempt from Western sanctions so it could conduct business.
After the war of aggression against Ukraine broke out, Russia also blocked the seaports of neighboring countries. With Ukraine a major agricultural exporter, there are growing global concerns about rising food prices and a hunger crisis in the poorest countries.
The so-called food deal was negotiated last summer with the mediation of the United Nations and Turkey. This allows Ukraine to export across the Black Sea, but on a limited scale.
>> Read here: All developments in the war against Ukraine
Representatives from the United Nations, Russia, Ukraine and Turkey inspected the shipment in Istanbul. The agreement has been extended several times, most recently by two months in mid-May.
Ukraine and Russia are important suppliers of wheat, barley, sunflower oil and other food products to countries in Africa, the Middle East and parts of Asia. They supplied nearly a quarter of the world’s food exports until war broke out in February 2022. Russia is also the world’s largest exporter of chemical fertilizers.
In 2022, despite the war, Ukraine will be able to export more than 38 million tons of grain through the grain agreement, generating revenue equivalent to more than 8 billion euros. Revenue is important to the state budget of the country, which is fending off a war of aggression from Russia.
Nearly 75% of exports are sold abroad via Black Sea and Danube ports. Seaborne exports are down about 23% compared to 2021.
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