Russia agrees to Black Sea Grain Initiative extension – for now

Two agreements were signed in July 2022, the Black Sea Grain Initiative, which enables the export of Ukraine’s agricultural goods under the supervision of the UN, Ukraine and Russia and Türkiye, and a Memorandum of Understanding between Russia and the UN on Russia’s food and fertiliser exports.

The Black Sea Grain Initiative was signed to try and ease rising food prices after the outbreak of war in Ukraine prevented exports from Ukraine, one of the world’s main grain and oilseed exporters. The initiative has since enabled the export of 24m tonnes of grains. Russia briefly suspended its participation in October 2022.

Russian Deputy Foreign Minister Sergey Vershinin said in a statement that Russia was not opposed to a 60-day extension of the Black Sea Grain Initiative beyond its March 18 renewal date, but noted the lack of progress in increasing Russia’s food and fertiliser exports.

The progress came after a meeting between a Russian delegation led by Vershinin, Martin Griffiths, Under-Secretary-General for Humanitarian Affairs and Emergency Relief Coordinator, and Rebeca Grynspan, Secretary-General of the UN Conference on Trade and Development.

“The comprehensive and frank conversation has once again confirmed that while the commercial export of Ukrainian products is carried out at a steady pace, bringing considerable profits to Kiev, restrictions on the Russian agricultural exporters are still in place. The sanctions exemptions for food and fertilizers announced by Washington, Brussels and London are essentially inactive,” said Vershinin.

Related:Mixed signals in grain trades as Ukraine corridor renewal looms

“Our further stance will be determined upon the tangible progress on normalization of our agricultural exports, not in words, but in deeds. It includes bank payments, transport logistics, insurance, "unfreezing" of financial activities and ammonia supplies via the “Tolyatti-Odessa” pipeline.”

The UN commented: “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, causing hardship particularly in developing countries.”

The UN Secretary-General said the UN remains fully committed to the Black Sea Grain Initiative, as well as to efforts to facilitate the export of Russian food and fertilizer.