‘Unanswered Questions’ Remain Over Ukraine Grain Deal Extension: Russia

Tue May 16 2023
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MOSCOW: Russia said on Tuesday that it was still unsure if it will continue its involvement in a landmark grain export deal with Ukraine brokered by the United Nations and Turkey, which was set to expire on May 18.

Dmitry Peskov, a Kremlin spokesman, said, referring to Russian fears about its own food and fertilizer exports being impacted by Western sanctions, that “there are a lot of unanswered questions regarding our part of the deal, and now we have to make a decision.”

The conflict between Russia and Ukraine, both important grain exporters, sparked worries of a global food crisis when Moscow’s warships blocked major Ukrainian ports.

Ukraine’s grain exports

The deal permitting Ukrainian grain exports to start again was signed in July 2022, along with a similar memorandum on unrestricted Russian food and fertilizer exports.

Russia, on the other hand, has often threatened to withdraw from the agreement, arguing that hurdles to its own food exports remain. According to Moscow, the issues start from the secondary effects of Western sanctions on shipping and insurance companies, as well as banks.

Turkish Defence Minister Hulusi Akar stated recently in Istanbul that “we are on the verge of reaching an agreement on the extension of the grain deal.” Russia has laid out a set of requirements for agreeing to an extension, including re-connecting the Russian Agricultural Bank (Rosselkhozbank) to the Swift payment system.

It further states that agricultural machinery, spare parts, and services must be restored and that restrictions to granting Russian vessels insurance and access to foreign ports must be lifted. Moscow’s terms also include the restoration of fertilizer ammonia exports via a major pipeline that runs through Ukraine.

 

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