Russia withdraws from the grain contract with Ukraine
According to the Kremlin, the terms of the settlement that was mediated by the UN and Turkey had not been met.
After Moscow's invasion last year pushed prices soaring, the Kremlin claims that Russia has stopped taking part in a contract that permitted grain to be shipped from war-torn Ukraine through the Black Sea to areas of the world experiencing hunger. This has a negative impact on global food security.
Two persons were killed in an explosion that shut down Russia's bridge to Crimea hours earlier in what Moscow claimed was an attack by Ukrainian maritime drones. The highway bridge serves as a key route for Russian forces engaged in combat in Ukraine.
Moscow said there was no link between the attack and its decision to suspend the grain deal, over what it called a failure to meet its demands to implement a parallel agreement easing rules for its own food and fertiliser exports.
The United Nations and Turkey brokered the landmark accord with Ukraine and Russia in July last year, which came with a separate agreement to facilitate shipments of Russian food and fertiliser that Moscow insists has yet to be applied.
Kremlin spokesman Dmitry Peskov said on Monday, hours before the Black Sea Grain Initiative was set to expire, that Russia would “return” to the deal “immediately” if its demands about its own exports were met.
Currently, the Black Sea agreements are no longer in effect, Peskov told reporters.
The portion of these Black Sea agreements that pertain to Russia, he continued, "unfortunately, has not been implemented thus far, so their effect is terminated."
With the last ship departing Ukraine on Sunday, more than 32 million metric tonnes of corn, wheat, and other commodities have been shipped by Ukraine under the agreement.
Ukrainian President Volodymyr Zelenskyy said his country was prepared to continue grain exports.
“Even without the Russian Federation, everything must be done so that we can use this Black Sea corridor. We are not afraid. We have been approached by companies that own ships. They said that they are ready” to continue shipments, Zelenskyy said in comments distributed on social media by his spokesman Sergiy Nykyforov.
The biggest agribusiness organization in Ukraine, the Ukrainian Agrarian Council, said alternative routes including river ports were more expensive to employ in terms of transportation costs.
But he was hoping for a solution.
Why not consider the prospect of continuing the grain deal without Russia as an alternative? In November 2022, we already have experience with this, he continued..
The grain sale was halted just hours after Russia claimed that Ukraine had assaulted a bridge connecting it to the Crimean Peninsula, which it had annexed. According to Russian authorities, a couple of civilians were murdered, and their daughter was injured.
In broadcast remarks, Russian President Vladimir Putin denounced a "senseless crime," vowed a "response," and called for increased protection at the bridge.
Peskov claimed that the nocturnal incident, which he referred to as a "terrorist act" and blamed on Ukraine, had nothing Russian to do with the decision not to renew the agreement.
Russia has agreed three times in the past year to extend the Black Sea deal, but also briefly suspended its participation at the end of October in response to a drone attack on its fleet in Crimea.
It has also complained that not enough grain has reached poor countries but the UN says the arrangement has benefitted those states by helping lower food prices by more than 20 percent globally.
As of Monday, almost 8 million tonnes of goods have been shipped to China, nearly 25 per cent of the 32.9 million tonnes A few hours after Russia said Ukraine had assaulted a bridge connecting it to the Crimean Peninsula it had annexed, the grain sale was halted. According to Russian officials, a civilian couple was murdered, and their daughter was injured.
Vladimir Putin, the president of Russia, denounced the "senseless crime" in televised remarks, vowed a "response," and demanded increased protection at the bridge.
Peskov said that the decision not to renew the agreement had nothing to do with the nocturnal attack, which he described as a "terrorist crime" and attributed to Ukraine.
Turkey’s role
Ukraine and Russia are two of the world’s biggest agricultural producers, and major players in the wheat, barley, maize, rapeseed, rapeseed oil, sunflower seed and sunflower oil markets. Russia is also dominant in the fertiliser market.
Russia’s invasion of Ukraine in February last year sent food commodity prices surging to record highs, contributing to a global food crisis also tied to other conflicts, the lingering effects of the COVID-19 pandemic, droughts and other climate factors.
High costs for grain needed for food staples in countries in the Middle East and Africa exacerbated economic challenges and helped push millions more people into poverty or food shortage.
The deal agreed last year providing assurances that ships will not be attacked entering and leaving Ukrainian ports, as well as the separate agreement facilitating the movement of Russian food and fertiliser, provided a boost to global food security.
While the exports of Russian food and fertiliser are not subject to Western sanctions due to its invasion of Ukraine, Moscow says restrictions on payments, logistics and insurance have become a barrier to shipments.
A critical Russian demand has been for the Russian Agricultural Bank (Rosselkhozbank) to be reconnected to the SWIFT international payments system. The bank was cut off from SWIFT by the European Union in June 2022 over the invasion of Ukraine.
Pavel Felgenhauer, a Moscow-based defence and military analyst, said many in Russia had been calling for months for the deal’s cancellation.
“Russia was saying that it might terminate the grain deal for some time but each time, there were negotiations between Putin and Turkish President Recep Tayyip Erdogan and the deal was continued,” he told Al Jazeera.
Felgenhauer said he expected Erdogan to put pressure on Putin, adding that the deal would be discussed at a summit between the two leaders that is likely to take place next month.
“It’s been several times that Erdogan had managed to change Putin’s position on serious matters,” Felgenhauer said.
The response of nations
Russia's decision to pull out of the agreement was regrettable, UN Secretary-General Antonio Guterres said on Monday, adding that it would "send a blow to people in need everywhere."
"Hundreds of millions of people are suffering from hunger, while consumers are dealing with a rising cost of living crisis worldwide. They will pay the price, Guterres said to New York-based reporters.
The suspension of the agreement by Russia, according to the White House in Washington, "would exacerbate food security and endanger millions."
“Hundreds of millions of people face hunger and consumers are confronting a global cost-of-living crisis. They will pay the price,” Guterres told reporters in New York.
In Washington, the White House said Russia’s suspension of the pact “will worsen food security and harm millions”.
The United Kingdom also denounced Russia’s decision.
“By unilaterally forcing the collapse of the BSGI (Black Sea Grain Initiative), Russia has used food as a weapon and is preventing grain from reaching those who need it most,” a spokesperson for the British foreign ministry said in a statement.
"The UK denounces Russia's clear attempt to exploit the most defenceless people as a component of its unlawful conflict. The BSGI must be renewed, and Russia must pledge to fully implement it.
Ursula von der Leyen, president of the European Union Commission, referred to Russia's action as a "cynical manoeuvre" and stated that the EU would continue to cooperate to ensure food security for underdeveloped nations.
Zhang Jun, China's UN envoy, expressed optimism that all parties could come to an agreement and notably mentioned that Russia had reservations.
Zhang told reporters, "We still expect that you know, by addressing the concerns of all sides... then we can find a package solution."