In July 2022, the United Nations, Russia and Türkiye negotiated the Black Sea Grains Initiative. This initiative is a way of holding up Ukraine so that it can ensure that grain can escape its southernmost tip through the Bosphorus. Grain cannot be exported in necessary quantities by rail or by road.
Türkiye joined because of the close relationship between the President of Türkiye and Vladimir Putin. Furthermore, the Montreux Convention signed in 1936 provided that maritime traffic in the Dardanelles and Bosphorus straits was guaranteed.
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The Grain Agreement was one of the diplomatic achievements since the war began. It allows commercial export of fertilizers and feed from Odesa, Pivdenny and Chornomorsk. Ukrainian ships guide cargo ships into the international waters of the Black Sea, thus avoiding areas with mines. The ships then headed for Istanbul along the humanitarian corridor at sea. Vessels entering or leaving Ukrainian ports are inspected by teams that include inspectors from the United Nations, Ukraine, Russia and Türkiye. Furthermore, a special agreement has been signed that reduces the impact of sanctions on Russian food and fertilizer exports. Both memos are subject to four reviews followed by two monthly reviews.
Result
Even after distrust, some 33 million tons of grain were exported from Ukrainian ports in July. According to the UK, around 61% of this is exported to low to middle income countries. The World Food Program brought in about 750,000 tons of grain from Ukraine, which was immediately shipped to areas such as Ethiopia, Sudan, Afghanistan and Somalia. As a result, the grain price per bushel stopped at $800 from $1,360.
Russia claims that the percentage of grain going to the poorest countries is actually less than 4%.
What happened and why?
Russia has begun to relax checks. Last year, in October, there were 10 ship inspections completed per day, that means 4.2 million tons for the month and in May this number will be reduced to 2 per day. The United Nations can inspect a total of 40 ships per day.
Compared to March 2023, in April, food exports fell by a total of 29% through this initiative and by 66% in May. This week, Russia broke the deal.
It can be said that Russia has realized that the West is not really respecting the second part of the agreement that actually enhances Russia’s agricultural exports. According to the UK, food exports from Russia are higher than last year and the country exports more fertilizer and grain from Novorossiysk.
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Categories: Trends
Source: HIS Education