Russia wants its demands met before extending the Black Sea Grain Initiative

The Russian Foreign Ministry said that Moscow would only agree to extend the Black Sea Grain Initiative, which allows safe exports from Ukrainian ports, if the interests of its agricultural producers were taken into account.

Source: The Guardian

Details: "The Russian side stressed that continuing the package agreement on grain is possible only if the interests of Russian agricultural and fertiliser producers in terms of unhindered access to world markets are taken into account," the ministry said, according to Reuters.

The deal, brokered by the UN and Türkiye, is up for renewal this month.

Ukraine has said it would seek a longer extension for up to a year to allow better forward planning, and would also like to see the port of Mykolaiv included. Russia, however, has signalled that it is unhappy with some aspects of the deal.

The business community has called on the UN and Türkiye, the guarantors of the agreement, to "facilitate the stable operation, prolongation, and expansion" of the Black Sea Grain Initiative and ensure free commercial navigation in the Black Sea.

The Black Sea Grain Initiative was signed in July 2022 and allows for commercial food and fertiliser exports from three key Ukrainian ports in the Black Sea. The agreement was extended in November 2022 and is set to expire on 18 March 2023, unless an extension is agreed upon.

Ukraine currently exports nearly three million tonnes of agricultural products a month in line with the agreement. Yurii Vaskov, Deputy Minister for Communities, Territories and Infrastructure Development of Ukraine, said that it could export up to six million tonnes a month from ports in Odesa Oblast and up to eight million tonnes if Mykolaiv is included in the initiative.

On 15 February, Ukraine’s Ministry of Foreign Affairs said that Russia was failing to uphold the Black Sea Grain Initiative.

In late October – early November 2022, Russia threatened to withdraw from the Black Sea Grain Initiative altogether and even suspended its participation in the agreement, but eventually decided to resume its implementation. Ukraine’s Foreign Ministry refuted Putin’s claim that Ukraine had accepted new responsibilities under the agreement [in order to facilitate Russia’s renewed participation].

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