(Russia) Russia announces no further extension of Black Sea grain shipment agreement

On July 17, Russia formally notified Turkey, Ukraine and the United Nations Secretariat not to extend the "Black Sea Food Initiative" that expired on that day ". Kremlin spokesman Peskov confirmed that the agreement had expired on the same day and said that Russia was willing to resume implementation immediately after the agreement involving Russia was implemented.

The agreement was brokered by the United Nations and Turkey in July 2022 to open up Ukraine's Black Sea food transport channel in the context of the Russian-Ukrainian conflict. According to United Nations data, during the one-year operation of the agreement, Ukraine transported about 32.8 million tons of grain through the Black Sea Corridor, of which about 12.4 million tons were shipped to EU countries and 9.9 million tons to Turkey, which played an important role in stabilizing the global food market. After the news of the suspension of the agreement came out, the international wheat futures price rose for a time.

The Russian side has repeatedly threatened to withdraw, with conditions including the re-access of the Agricultural Bank of Russia to the SWIFT system, the lifting of logistics and insurance restrictions on Russian food and fertilizer exports, and the resumption of the operation of the Togriati-Odessa liquid ammonia pipeline. Russia has been complaining that the agreement "only takes care of Ukraine" and that its food and fertilizer exports still face obstacles in terms of payment, shipping and insurance.

The Black Sea Food Initiative is regarded as the most important food security arrangement since the Russian-Ukrainian conflict, and its trend is directly related to the countries of North Africa, the Middle East and South Asia that depend on the food source of the Black Sea. The United Nations said it would continue to communicate with all parties, while the market was concerned about the alternative capacity of Ukrainian food exports through the Danube ports and land routes.

Source: UN Black Sea Food Initiative Bulletin; RIA Novosti; Reuters; EFE, 17 July 2023.