Russia has signalled that it is willing to extend the Black Sea Grain Initiative, which is due to end on Saturday (March 18), but only for another 60 days.
The agreement, which has facilitated the export of more than 24 million tonnes of grain from Ukraine, has until now operated on a 120-day cycle. It was renewed for this length of time in July last year, and again in November, with that cycle due to finish later this week.
However, Russia’s deputy foreign minister Sergei Vershinin has indicated that the country does not mind extending the agreement, but only for 60 days this time.
The development comes after United Nations (UN) Secretary General Rebeca Gryspan and the UN Secretary General for Humanitarian Affairs met with a delegation from the Russian Federation in Geneva to discuss two agreements which were signed on July 22, 2022.
Speaking after the meetings yesterday (March 13), spokesperson for the UN secretary general Stephane Dujarric said:
“The UN remains totally committed to the Black Sea Grain Initiative as well as our efforts to facilitate the export of Russian food and fertiliser.
“The impact of these in lowering global food prices has been clearly shown by the FAO in their regular monthly price index.
“And this is why we will go on doing everything to protect the integrity of the agreement and ensure its continuity,” he added.
The reaction to the news has been mixed, as some traders state that this is an effort by Russia to deploy additional leverage before agreeing a final extension, while others say that 60 days is better than nothing at all.
However, a 60-day extension may lead to scheduling challenges for forward shipments, with additional difficulties arising from inspection delays in Istanbul, which regularly delay ships by 25 to 50 days.
Ukraine’s infrastructure minister Oleksandr Kubrakov has said that Russia’s move to shorten the extension goes against the agreement document which was ratified by Turkey and the UN last year.
He said that Ukraine will wait to hear their position before moving on the deal.
Yesterday’s discussions also focussed on the Memorandum of Understanding between the Russian Federation and the UN, to facilitate unimpeded exports of food and fertiliser.
The UN has reiterated its support for this agreement as well, stating that its support is part of the global response to “the most severe cost-of-living crisis in a generation,” it said in a statement.
“The two agreements have had a positive impact on global food security, with millions of tonnes of grain reaching global markets.
“The continuation is crucial for global food security, as grain and fertiliser prices and availability have not returned to pre-war levels, causing hardship, particularly in developing countries,” it said.
The Turkish Minister of National Defence, Hulusi Akar said the country started the negotiations with the idea of extending the grain corridor for another 120 days, in accordance with the initial version of the agreement.
“The parties will evaluate them and make their decisions. Hopefully, we will try to solve it in a positive way as soon as possible,” he said.