Russia to Exit UN-Brokered Deal Allowing Ukrainian Grain Exports via Black Sea

In a significant development, Russia has announced its intention to withdraw from the agreement brokered by the United Nations and Türkiye, which allowed Ukrainian grain to be exported via the Black Sea. Russia’s Deputy Foreign Minister Sergey Vershinin confirmed this decision, stating that the exit is scheduled to take place on July 18.

However, Vershinin did not completely rule out the possibility of new consultations with the UN to salvage the agreement. He mentioned that Russia remains in contact with the global body on the issue but emphasized their commitment to proceeding as planned. “We’re going to do what we’ve said. We’re gearing up towards July 18 becoming the time when the agreements that aren’t being fulfilled end,” he stated.

During recent talks, the UN reportedly acknowledged its inability to fulfill the promises made to Moscow as part of the agreement, which the deputy FM described as a “sad” situation. The deal, signed in Istanbul in July 2022 with mediation by the UN and Türkiye, aimed to ensure the safe shipment of Ukrainian grain through Black Sea corridors. In return, the United States and European Union were expected to remove obstacles to exports of Russian food products and fertilizers, which were imposed due to the ongoing conflict between Russia and Ukraine.

Initially lasting for 120 days, the agreement was extended multiple times by Russia despite the Western nations failing to fulfill their obligations. However, the deal is now set to expire on July 17.

To consider extending the agreement, Russia has presented several terms, including the reconnection of the Russian Agricultural Bank (Rosselkhozbank) to the SWIFT international payment system, unblocking access to ports and insurance for ships transporting Russian food products, resuming operations of the Togliatti-Odessa ammonia pipeline, restoring the supply of agricultural hardware and spare parts, and unfreezing the assets of Russian agricultural companies.

Russian President Vladimir Putin recently expressed Russia’s contemplation of exiting the grain deal due to the lack of progress in facilitating the country’s food and fertilizer exports. He also pointed out that Ukraine had utilized the safety corridors in the Black Sea to launch naval drones. According to Putin, around 30 million tons of grain have been transported from Ukrainian ports under the agreement.

The withdrawal of Russia from the deal will have significant implications for the Ukrainian grain industry and international trade in the region. It remains to be seen whether further negotiations or alternative agreements will be pursued to address the issues surrounding the export of Ukrainian grain through the Black Sea.