Blow hot blow cold? Putin sounds conciliatory but defence ministry raises stakes on grain ships

Russian Defence Ministry said on Wednesday (July 19) that it would deem all ships travelling to Ukrainian ports to be carriers of military cargo. It added that countries the flag of which would potentially fly on the ships will be considered to be party to the conflict on the Ukrainian side. Russia has taken this stance after its decision this week to pull out of the United Nations-brokered Black Sea grain import deal. This deal had previously guaranteed the safety of Ukrainian exports for the past one year.

"In connection with the termination of the Black Sea Initiative and the end of the maritime humanitarian corridor, from 00.00 Moscow time on July 20, 2023 (2100 GMT on Wednesday) all ships proceeding to Ukrainian ports in Black Sea waters will be considered as potential carriers of military cargo," the ministry said in a statement on the Telegram messaging app.

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The ministry also said that Russia was also declaring southeastern and northwestern parts of the Black Sea's international waters to be temporarily unsafe for navigation. The ministry did not give details about the parts of the sea which would be affected.

Putin stikes conciliatory tone

Just when Russian Defence Ministry appeared to raise stakes, Russian President Vladimir Putin appeared to strike a conciliatory tone. He said that Russia can 'consider' returning to the grain deal if Russia's demands are "fully met".

"The continuation of the grain deal in its current form has lost all meaning," Putin said at a government meeting, "of course we will consider the possibility of returning to it -- but only under one condition: if all principles under which Russia agreed to participate in the deal are fully taken into account and fulfilled."

Spike in wheat prices

Wheat prices rose on the same day Russia said it was ceasing its participation in the grain deal. There was 3 per cent increase in wheat futures. The prices hit a high of 689.25 cents per bushel. The prices remained well below the peak they reached in May last year. The price at that time was 1177.5 cents per bushel.

Russia attacked grain infrastructure, accuses Ukraine

On Wednesday (July 19), Ukraine accused Russia of attacking grain infrastructure during overnight strikes that were aimed at two of Ukraine's Black Sea ports. Ukraine said it will not be intimidated from working to keep grain exports moving out of them.

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"Russian terrorists absolutely deliberately targeted the infrastructure of the grain deal," Ukrainian President Volodymyr Zelenskiy said on the Telegram messaging app. "Every Russian missile - is a strike not only on Ukraine but on everyone in the world who wants normal and safe life."

Due to its significant grains exports, Ukraine is often called 'breadbasket of the world'. After Russia invaded Ukraine in February last year. The grain exports were impeded. This had raised the spectre of a global food crisis.

Turkey and the United Nations then brokered a deal between Ukraine and Russia. The Black Sea grain deal was intended to facilitate Russian and Ukrainian agricultural exports. The deal expired on July 17. Russia declined to renew its participation.

There has been a constant complaint from Moscow that a parallel deal to ease rules for Russian exports of food and fertilisers was not being implemented. Kyiv has called for security guarantees to allow shipping to resume without Russian participation.

(With inputs from agencies)

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