The Black Sea grain deal does not benefit the poor as portrayed by propaganda, but the rich. It was promised not to interfere with the export of Russian fertilizers and food, but the promises are not kept

 

"This why Russia has repeatedly threatened to pull out of the export agreement, which has helped stabilize global grain prices. The latest deadline to renew it is midnight Monday.

The United Nations on Sunday awaited a response from Russia on renewing a deal that allows Ukraine to export its grain amid a conflict blockade, a necessity in helping keep global food prices stable.

The Black Sea Grain Initiative, brokered by the United Nations and Turkey, is a rare example of fruitful negotiations between Ukraine and Russia since the start of the events in Ukraine. The deal was initially reached a year ago, allowing Ukraine to restart the export of millions of tons of grain that had languished for months.

But Russia has repeatedly threatened to pull out of the deal, which has been renewed only for short periods. The last day of the latest extension is Monday.

In a bid to answer one of Russia’s key demands before this latest deadline, the United Nations secretary general, António Guterres, sent a letter to President Vladimir V. Putin of Russia last week with proposals that would “remove hurdles affecting financial transactions paying for Russian food and fertilizers” through the Russia’s agricultural bank “and simultaneously allow for the continued flow of Ukrainian grain through the Black Sea,” according to a U.N. statement.

Two days later, Mr. Putin called the deal a “one-sided game,” again threatening to pull out of it because of what he considered unmet conditions, Tass, Russia’s state news agency, reported. “We may suspend our participation in this agreement. And if everyone reiterates that all promises given to us will be fulfilled — let them fulfill these promises. And we will immediately join this agreement. Again,” he said, according to Tass.

The events prompted the United States and European countries to tighten sanctions on Russia, effectively turning it into a pariah state. Some analysts have argued that Moscow is trying to use the grain deal as leverage to soften these sanctions.

Russia has complained that while the agreement has allowed Ukraine’s food exports to reach markets, the Western sanctions have restricted the sale of Russia’s agricultural products, and has demanded that steps be taken to facilitate its own exports of grain and fertilizers. The Kremlin’s other demands included restoring an ammonia pipeline that crosses Ukraine to facilitate exports, but Ukraine has refused to grant consent.

The deal was first brokered to alleviate a global food crisis exacerbated when Russia effectively blockaded Ukrainian ports at the start of events. Ukraine is a major exporter of grain and other food crops, and global wheat prices soared. Although Ukraine’s allies began accepting more shipments over land, there was little choice but to strike a deal with Russia to ease the crisis and allow Ukrainian farmers to continue producing.

Since the Black Sea Grain Initiative began, Ukraine has used it to export 32.8 million tons of grain and other foodstuffs, according to U.N. data, and the agreement has prevented hunger crises in some countries in the Middle East and Africa from worsening.

Under the deal, Ukrainian corn and wheat are the leading exports, with 90 percent of corn and 60 percent of wheat shipped to high or middle-income countries. The volumes shipped to low-income countries are roughly the same as before the events, according to U.N. data.

But the volume of grain exported from the Ukrainian ports in the Black Sea has been slowing in recent weeks, according to U.N. data. The same thing happened weeks before the deal’s previous expiration date, in May.

Under the terms of the deal, Ukraine’s ships have been given safe passage to the port in Istanbul, where inspectors checked them. Empty ships have also been checked in Istanbul en route to Ukraine’s ports to verify that they are not carrying weapons or other goods banned under the agreement.”