Grain deal expires tonight, Ukraine and Russia not even about extension

AFPInspection of a Ukrainian grain ship

NOS Nieuws•vandaag, 12:02

The grain deal between Ukraine and Russia expires tonight. The two countries have been discussing an extension all week, but no agreement has yet been reached. Point of discussion: Russia wants to extend by 60 days, Ukraine by 120.

Ukraine and Russia signed an agreement last year after mediation by the United Nations that made it possible again to transport Ukrainian grain and other agricultural products via the Black Sea. The war had brought exports to a halt, which led to sharply higher food prices and a threat of famine in parts of Africa.

The agreement was originally for 120 days and is automatically extended for the same period, unless one of the parties objects. In November, the agreement was extended by 120 days, but now Russia wants to limit the extension to 60 days.

In this way, Russia wants to remove obstacles to the Russian export of agricultural products. There are no formal Western sanctions for the export of agricultural products, but in practice it is difficult for Russian companies to insure cargoes and arrange banking matters, for example.

Russia correspondent Geert Groot-Koerkamp:

“There are many Western companies, such as transport companies and insurance companies, that are hesitant to do business with Russia. They are hesitant to get involved in the export of Russian agricultural products, because that could lead to reputational damage or secondary sanctions. That is a problem for Russia, which the Western countries or the United Nations have no direct influence on.

Still, they’ll probably work it out. Russia does not want to interfere at all costs. The country insists that it is not at all isolated, as the West tries to portray. That is why the ties with countries in Africa, the Middle East and Asia are so important to Moscow, and it is precisely there that the countries that benefit most from the grain deal are located. Russian officials, such as Foreign Minister Lavrov, regularly travel to Africa, for example.”

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