Black Sea Grain Agreement only extended for 60 days – background

Black Sea Grain Agreement only extended for 60 days – background

Olaf Zinke, AGRARHEUTE*

© stock.adobe.com/Aleksandr Lesik

Moscow has expressed frustration that the deal has not fully opened the door to Russian grain and fertilizer exports via the Black Sea. Russian Deputy Foreign Minister Sergei Verchinin said Moscow was ready to extend the Black Sea Grain Initiative, but only for 60 days, instead of the current 120 days.

Russia only wants to extend the grain deal for 60 days, not 120 days as is currently the case. Russia also deplores persistent obstacles to the export of cereals and fertilizers. The UN recalls the great importance of the agreement for food security and the world prices of foodstuffs and cereals.

« The United Nations takes note of today’s announcement by the Russian Federation of a 60-day extension of the Black Sea Grains Initiative says a UN statement. Russian Deputy Foreign Minister Sergei Verchinin said there that Moscow was ready to extend the Black Sea Grain Initiative, but only for 60 days instead of the current 120 days, the press service of the Russian Federation reported. UN in a statement released on Monday.

On Monday, the Russian delegation led by Mr. Verchinin had discussions with the United Nations, represented by Ms. Rebeca Grynspan, Secretary General of the United Nations Conference on Trade and Development (UNCTAD), and Mr. Martin Griffiths, Deputy -United Nations Secretary General for Humanitarian Affairs and Emergency Relief Coordinator.

« Discussions focused on the implementation of the two agreements signed on July 22, 2022: the Black Sea Grain Initiative between the Russian Federation, Turkey, Ukraine and the United Nations; and the Memorandum between the Russian Federation and the United Nations to facilitate the unimpeded export of food and fertilizer”, noted the United Nations, « as well as efforts to facilitate the export of Russian food and fertilizer products. »

Moscow has expressed frustration that the deal has not fully opened the door to Russian grain and fertilizer exports via the Black Sea. Nevertheless, total Russian wheat deliveries in November, December and January reached or approached record highs, rising 24% from the same three months a year earlier, according to the financial data provider. Refinitiv.

Grain deal decides grain prices

« The full and open discussion confirmed once once more that, although commercial exports of Ukrainian products are occurring at a steady pace and generating considerable profits for Kyiv, restrictions continue to be imposed on Russian agricultural exporters the Russian delegation said in a statement. The Secretary General of the United Nations reaffirmed that the United Nations would everything in their power to preserve the integrity of the Black Sea Grains Initiative and ensure its continuity ».

« The United Nations support for the agreements reached in Istanbul is part of the global response to the most serious cost of living crisis in a generation “, reads the statement. ” Both agreements have had a positive impact on global food security, with millions of tonnes of grain reaching world markets. The Black Sea Grain Initiative enabled the export of 24 million tonnes of grain and more than 1,600 safe boat trips across the Black Sea, with 55 percent of food exports going to developing countries. »

« The continuation of the Black Sea Grain Initiative is crucial for global food security, as grain and fertilizer prices and availability have not returned to pre-war levels, creating challenges, especially in developing countries said the UN. In Washington, US State Department spokesman Ned Price stressed the need to extend the agreement, describing it as ” a critical instrument at a critical time ».

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* Olaf Zinke works for AGRICULTURAL TODAY as a cross-media editor for operations and markets. He has been analyzing national and international agricultural and commodity markets for three decades and has worked in this capacity for various institutions.

Source : Grains deal extended by just 60 days – Backgrounds | agrarheute.com