UN chief worried over Russia possibly quitting grain deal in July

United Nations Secretary-General Antonio Guterres said on Monday (June 12) that he had concerns that Russia will quit the Black Sea grain deal on July 17. The deal allows the safe wartime export of Ukrainian grain and fertilisers from three Ukrainian Black Sea ports.

The deal, called Black Sea Grain Initiative, was brokered by the United Nations and Turkey in July last year. Russia has been threatening to walk away from the deal if obstacles to its own grain and fertiliser shipments are not removed.

"I am concerned and we are working hard in order to make sure that it will be possible to maintain the Black Sea initiative and at the same time that we are able to go on in our work to facilitate Russian exports," Guterres told reporters.

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To convince Russia to agree to the Black Sea grain deal, a three-year memorandum of understanding was struck at the same time under which UNofficials agreed to help Russia with its own food and fertiliser exports.

Russian food and fertiliser exports are not subject to Western sanctions which were imposed after Russia invaded Ukraine last year. However, Moscow says payment restrictions, logistics and insurance have created obstacles.

On Saturday, Deputy Foreign Minister Sergei Vershinin said that Russia "cannot be satisfied with how this memorandum is being implemented," TASS news agency reported. Vershinin was speaking after his meeting with Rebeca Grynspan, the top UN trade official. The meeting took place in Geneva on Friday.

Among the demands made by Russia are the resumption of its ammonia exports via a pipeline to Ukraine's port of Pivdennyi and the reconnection of the Russian Agricultural Bank (Rosselkhozbank) to the SWIFT international payment system.

The United Nations has helped boost Russian exports of food and fertilisers, facilitating a steady flow of ships to its ports and lower freight and insurance rates, a UNspokesman said on Friday.

Russia invaded Ukraine on February 24 last year. Due to its grain exports, Ukraine is often regarded as the "breadbasket of the world". Russian invasion made it difficult for grain export to continue and this raised the spectre of a global food crisis. The existence of a safe passage for grain shipments was thus deemed important. The United Nations and Turkey brokered the grain deal between Russia and Ukraine. The deal, even after being struck, has almost always faced uncertainty.

(With inputs from agencies)

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