"The European Union implemented a new sanctions package on Russia that officials hope will significantly relieve food-security problems facing developing and poor countries.
The sanctions deal, which was pushed through by EU leaders when they met for a summit Thursday, came amid intense lobbying by United Nations Secretary-General Antonio Guterres. He called several European leaders to persuade them to ease the transit of Russian fertilizers through EU ports.
At the heart of the issue is a battle of narratives over who is to blame for a surge in food and fertilizer prices. Western countries blame Russia and the Kremlin blames Western sanctions.
The EU has noted language in its sanctions legislation stating that food, fertilizers and other key humanitarian goods are exempt from sanctions. The reality has become more complex.
In recent months, vessels carrying fertilizers have been held up for weeks or denied permission to transit through large European ports because of concerns over sanctions.
Among the targets of EU sanctions on Russia's elites are current or former owners of some of Russia's biggest companies producing and distributing fertilizer. Customs authorities in some member states said that as a result of the sanctions, vessels carrying fertilizer linked to sanctioned Russian oligarchs couldn't transit through their ports because the facilities couldn't accept payments for costs or permit payments to firms linked to oligarchs whose EU assets were frozen. Some vessels passed through but were held up for weeks because they needed to get clearance from national authorities who themselves were unsure of the rules.
Under Thursday's deal, it was agreed that national governments can unfreeze the assets if strictly necessary for fertilizer shipments. The exemptions must be reported to the European Commission, the EU's executive body, to ensure they are being properly applied.
To stop sanctions circumvention, the exemptions would only apply to people or entities linked to a significant Russian agrifood business that were active in the field before being sanctioned. The shipment also must be part of a U.N. program shipment or go to a developing nation covered by the U.N.'s food-security priorities. One potential challenge: Identifying which countries count as being U.N. priority destinations and ensuring that the final destination is what is claimed." [1]
1. World News: EU Moves to Ease Concerns Over Food Prices
Norman, Laurence; Malsin, Jared. Wall Street Journal, Eastern edition; New York, N.Y. [New York, N.Y]. 17 Dec 2022: A.6
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