BERLIN: German Chancellor Olaf Scholz and Ukrainian President Volodymyr Zelensky have urged for the extension of a crucial grain export deal that allows Ukraine’s grain to reach global markets.
The current agreement, brokered by the United Nations (UN) and Turkey a year ago, is set to expire soon, prompting concerns about the continuity of grain exports from Ukraine. The leaders emphasized the importance of extending the agreement beyond its expiration date of July 17 during a phone call, according to a statement by Chancellor Scholz’s spokesman, Steffen Hebestreit.
The grain deal, which has been renewed on multiple occasions since its inception, has played a significant role in improving the global food situation. However, apprehension has grown following Russian President Vladimir Putin’s recent comments about potentially withdrawing from the agreement. Moscow has consistently threatened to exit the accord, which grants safe passage for Ukrainian grain exports through the Black Sea, unless guarantees are provided for Russian fertilizer exports.
In response to Russia’s concerns, a parallel agreement between Moscow and the UN aims to facilitate Russian food and fertilizer exports, which are exempt from Western sanctions imposed on Russia. However, Russia claims that this agreement is not being upheld.
Russia’s Concerns Over Ukraine Grain Export Deal
Russia’s envoy to the UN in Geneva, Gennady Gatilov, stated earlier on Monday that there were currently no grounds to maintain the “status quo” of the deal. He pointed to Western capitals hindering progress on reconnecting the Russian Agricultural Bank to the SWIFT banking system as a factor. Gatilov expressed in an interview with the state-backed Izvestia newspaper, “What we are seeing now does not give us grounds to agree to maintaining the status quo” on the deal.
The grain export agreement has been vital for Ukraine, especially after Russia’s invasion in February 2022 resulted in the blockade of Ukraine’s Black Sea ports by warships. The deal, signed in July 2022, allowed for the passage of critical grain exports and helped alleviate the global food shortage caused by the conflict. According to the UN, approximately 32.4 million tonnes of grain have been exported under the agreement so far, with corn accounting for slightly over half of the exports and wheat comprising more than a quarter.
The initial 120-day agreement, signed with the UN and Turkey in July 2022, has been extended three times since then, in November, March, and May.