global trade

Ukraine says Russia preventing operations of Black Sea grain deal port

Reuters

This is AI generated summarization, which may have errors. For context, always refer to the full article.

Ukraine says Russia preventing operations of Black Sea grain deal port

PORT. The Lebanese-flagged bulk carrier Brave Commander leaves the sea port of Pivdennyi with wheat for Ethiopia, in the town of Yuzhne, Ukraine, August 16, 2022.

Igor Tkachenko/Reuters

A Ukrainian official says Russian inspectors have refused to inspect ships bound for Pivdennyi since April 29, 'significantly' reducing Ukrainian grain exports

KYIV, Ukraine – Ukraine accused Russia on Tuesday, May 23, of effectively cutting the Ukrainian port of Pivdennyi out of a deal allowing safe Black Sea grain exports as Russia complained that it had been unable to export ammonia via a pipeline to Pivdennyi under the pact.

The Black Sea deal – brokered last July by the United Nations and Turkey and extended last week for two months – covers the wartime export of food and fertilizer from the Ukrainian ports of Odesa, Chornomorsk, and Pivdennyi.

The UN expressed concern on Monday, May 22, that Pivdennyi had not received any ships since May 2 under the deal.

Ukrainian Deputy Renovation Minister Yuriy Vaskov accused Russia of a “gross violation” of the agreement. All ships are inspected by a joint team of Russian, Ukrainian, Turkish, and UN inspectors, but Vaskov said the Russian inspectors had refused to inspect ships bound for Pivdennyi since April 29.

“They (Russia) have now found an effective way to significantly reduce [Ukrainian] grain exports by excluding the port of Pivdennyi, which handles large tonnage vessels, from the initiative,” Vaskov said in written comments on Tuesday.

Pivdennyi is the largest port included in the deal in terms of throughput. Restoration ministry data show it is storing about 1.5 million metric tons of food items for future export to 10 countries, with 26 ships due to come for them.

US State Department spokesperson Matthew Miller told reporters on Tuesday that Russia’s actions were “a clear violation of their commitments” under the grain deal, calling on Moscow to “stop holding global food supplies hostage.”

The Russian embassy in Washington did not immediately respond to a request for comment on Miller’s remarks.

Ammonia

The Black Sea grain deal was agreed to help tackle a global food crisis aggravated by Moscow’s invasion of Ukraine in February 2022. The pact also covers ammonia, which Russia transported to Pivdennyi via pipeline for export before the war.

Russia had threatened not to renew the Black Sea deal unless a list of demands related to its own food and fertilizer exports was met. Restarting the ammonia pipeline is one of those demands, which the United Nations has been trying to broker.

Russia used to pump up to 2.5 million tonnes of ammonia annually for export via the pipeline from Togliati. Russia’s UN Ambassador Vassily Nebenzia on Tuesday said that amount of ammonia could “produce 7 million tonnes of fertilizers.”

“This amount of fertilizer would allow to produce enough food to supply to 200 million people. These deliveries should have started at the same time as those of Ukrainian food. However this never happened,” he told the UN Security Council.

“The deficit of ammonia on the world markets stands at 70% due to the shortfall in volumes,” Nebenzia said.

A Ukrainian government source told Reuters on Friday, May 19, Kyiv would consider allowing Russian ammonia to transit its territory for export if the Black Sea grain deal was expanded to include more Ukrainian ports and a wider range of commodities.

Uralchem, Russia’s biggest potash and ammonium nitrate producer, expects the opening of an ammonia export terminal near the Black Sea to make the pipeline across Ukraine much less important, the company’s chief executive officer said.

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.

Ukraine accused Moscow of slowing ship inspections under the Black Sea deal, which Russia denies.

“It is not working as it should. Russia continues to slow it down as much as possible,” Vaskov said.

According to UN data, more than 30 million metric tons of food products have been exported so far under the Black Sea deal. – Rappler.com

Add a comment

Sort by

There are no comments yet. Add your comment to start the conversation.

Summarize this article with AI

How does this make you feel?

Loading
Download the Rappler App!