UNITED NATIONS- The United Nations has helped boost Russian exports of food and fertilizers, facilitating a steady flow of ships to its ports and lower freight and insurance rates, a UN spokesman said on Friday after UN and Russian officials discussed the efforts.
Top UN trade official Rebeca Grynspan met with Russia’s Deputy Foreign Minister Sergei Vershinin in Geneva on Friday as Moscow threatens to walk away from a deal allowing the safe export of food and fertilizer from Ukraine’s Black Sea ports on July 17 if obstacles to its own such shipments are not removed.
To convince Moscow to agree to the pact known as the Black Sea Grain Initiative – brokered by the United Nations and Turkey in July last year – a three-year agreement was struck at the same time under which UN officials agreed to help Russia with its own food and fertilizer exports.
UN spokesman Stephane Dujarric said “the past months have shown tangible progress” on improving Russian exports, but added: “Challenges remain but we will spare no effort to overcome all remaining obstacles.”
While Russian exports of food and fertilizer are not subject to Western sanctions imposed after the February 2022 invasion of Ukraine, Moscow says restrictions on payments, logistics and insurance have amounted to a barrier to shipments.
Russia’s Ambassador to Turkey said on Friday that while Moscow continues talks with the United Nations on the Black Sea grain deal, there are no grounds to extend it beyond July 17, the RIA news agency reported.
Dujarric said that in the coming weeks UN officials would remain focused on trying to further improve Russian food and fertilizer exports before July 17.
“The United Nations remains resolutely committed to working for global food security by ensuring that essential food and fertilizers reach global markets and are available and affordable for all,” he said.
Russia is still not satisfied with how a Black Sea grain deal is being implemented, Deputy Foreign Minister Sergei Vershinin said on Saturday after meeting senior U.N. trade officials a day earlier, the TASS news agency reported.
Russia has threatened to walk away from the grain deal on July 17 if demands to improve its own food and fertilizer exports are not met. The deal, struck in July last year, facilitates the “safe navigation” of grain, foodstuffs and fertilizers – including ammonia – for export to global markets.
“We cannot be satisfied with how this memorandum is being implemented,” Vershinin was quoted as saying. “Barriers to our exports remain.”
Russia agreed to a two-month extension of the deal last month but has said the initiative will cease unless an agreement aimed at overcoming obstacles to Russian grain and fertiliser exports is fulfilled.
The demands set out by Moscow include the resumption of the transit of ammonia from Russia via Ukrainian territory to Pivdennyi port in Odesa, from where it is exported. Transit of ammonia, an important part of nitrogen-based fertilisers, was halted via the pipeline after Russia sent its troop to Ukraine last year.
Russia’s demands to improve its grain and fertiliser exports include the reconnection of Russian Agricultural Bank (Rosselkhozbank) to the SWIFT international payment system.
While Russian exports of food and fertilizer are not subject to Western sanctions, Moscow says restrictions on payments, logistics and insurance have amounted to a barrier to shipments.
Russia’s foreign ministry said in a statement that U.N. representatives’ attention was drawn to obstacles facing Russian agricultural producers and suppliers.
“(They) are still forced to overcome numerous restrictions and barriers provoked by illegal anti-Russian sanctions associated with bank payments, delivery and insurance of goods, on their own and at high costs, which negatively affects prices and physical availability of goods,” it said.
Russia’s ambassador to Turkey said on Friday that despite ongoing consultations with the United Nations on the grain deal, there are no grounds to extend it, the RIA news agency reported. -Reuters
