Russia accepts extending the grain agreement with Ukraine for 60 days

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In a proposal criticized by Kiev, Russia agreed on Monday to extend the Ukraine grain export deal for another 60 days.

Following discussions with the UN in Geneva, Moscow declared that, contrary to expectations, it would not object to the so-called Black Sea Grain Initiative being extended in an effort to ease the world food crisis.

However, Russia only consented to extend the agreement for 60 of the original 120 days.

Although it issued a warning that the proposal “contradicts” the original agreement, Ukraine did not object.

Until the agreement signed in July allowed for the safe passage of exports of essential grain supplies, Ukraine’s Black Sea ports were blocked by warships during Russia’s full-scale invasion of that country in February 2022.

The Black Sea Grain Initiative has assisted in alleviating the global food shortage brought on by the conflict. Ukraine was one of the top producers in the world.
According to the UN, more than 24.1 million tonnes have been exported thus far under the agreement.

The original 120-day deal reached with the UN and Turkey was extended in November for an additional 120 days, until March 18.

Due to concerns that the twinning agreement on Russian exports was not being adhered to, the Kremlin had expressed doubt as to whether it would consent to any further extensions.

It claimed on Monday that Western sanctions exemptions were “essentially inactive” and that it needed to see “tangible progress” on the parallel agreement on unrestricted Russian food and fertilizer exports.

Exports have “normalized”

After talks on Monday at the Palais des Nations UN headquarters in Geneva with top UN officials, Deputy Foreign Minister Sergey Vershinin stated that Moscow wants to see actions, not just words, on upholding this second part of the package.

Vershinin stated in a statement that “the Russian side… does not object to another extension of the ‘Black Sea Initiative’ after its second term expires on March 18 but only for 60 days.

“Not (in) words, but (in) deeds, our further stance will be based on the tangible progress on normalizing our agricultural exports.

It includes ammonia supplies via the Tolyatti-Odessa pipeline, bank payments, transportation logistics, insurance, and unfreezing of financial activities.

Despite claiming that Russia’s position violated the agreement, the Ukrainian minister of infrastructure did not reject Moscow’s 60-day proposal.

Oleksandr Kubrakov wrote on Twitter that since the grain agreement calls for an extension of at least 120 days, Russia’s position that the extension should only be for 60 days runs counter to the agreement that Turkey and the UN signed.

He stated, “We’re awaiting the UN’s and Turkey’s official positions as the initiative’s guarantors.

“Inactive” sanctions exemptions

Vershinin led the Russian delegation to the negotiations, joining Rebeca Grynspan, the head of UNCTAD, and Martin Griffiths, the head of the UN agency for trade and development.

The second agreement, between Moscow and the UN, aims to make it easier for Russian food and fertilizers to be exported, even though it also deals with the export of Ukrainian grain.

These are not subject to the sanctions the West has placed on Moscow.

Vershinin stated that although the commercial export of Ukrainian goods proceeds at a steady pace and generates significant profits for Kyiv, restrictions on the Russian agricultural exporters are still in place.

“The food and fertilizer sanctions exemptions announced by Washington, Brussels, and London are essentially inactive.”

According to UN data, more than a quarter of the exports shipped so far under the agreement are wheat and close to half are corn.

Approximately 45% of exports were made to developed nations. China was the largest recipient, and then came Spain, Turkey, Italy, and the Netherlands.

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