UN tries to convince Russia to extend grain export deal

On Wednesday (05), the UN assured that it will continue its efforts to get Russia to agree to extend the agreement that allows the export of grain from Ukraine to international markets, although it acknowledged that there are "problems to be solved".

"Our efforts have allowed us to make progress on many issues, such as the obstacles to the export of cereals and fertilizers presented by Russia, but there are still problems with the financial transactions of the agricultural bank," the director of the United Nations Trade and Development Agency (UNCTAD), which represents the organization in the negotiations, told the Spanish news agency EFE.

According to Rebeca Grynspan, the main issue is linked to the export of Russian food and fertilizers, an issue that is part of the pact.

On Tuesday, the Russian government said that there was no reason to extend the agreement, which expires on the 17th of this month, because the problems for its own exports have not been resolved, although Kremlin spokesman Dmitri Peskov toned down his comments on Wednesday, stressing that the West still has a few days to resolve the obstacles.

According to UNCTAD, the agreement is about to turn one year old and has facilitated the export of more than 32 tons of cereals and seeds from Ukraine to 45 countries on three continents, while allowing countries in sub-Saharan Africa and less developed states in other regions to receive a quantity of wheat similar to that of the period before the war in Ukraine.

Russia's demands also include the reintegration of its agricultural bank, Rosselkhozbank, into the SWIFT international banking system, the lifting of sanctions on spare parts for agricultural machinery, the unblocking of transport logistics and insurance, the unfreezing of assets and the reopening of the Togliatti-Odessa ammonia pipeline, which exploded on June 5.

"Many of these problems have been the subject of our intervention and improvements have been made," insisted Grynspan, while acknowledging that obstacles remain on issues related to Rosseljozbank and the Togliatti-Odessa oil pipeline.

As far as progress is concerned, the representative said that there had been improvements in third-country access to Russian food exports through Europe, in the unfreezing of some Russian companies' assets (in the fertilizer and food sectors, which are not affected by international sanctions) and in access to and lower insurance prices for Russian ships.

"Shipping companies' insurance rates for Russian products have fallen, although not to the level they would like," he said.

Rebeca Grynspan argued that Russian associations of grain and fertilizer producers have published figures showing that since July 2022, when the agreement was signed, exports have increased.

"Are we where we would like to be? No, there are still problems to solve," said Grynspan, who did not rule out a trip to Moscow soon to try to convince the Russian government to continue with the agreement.

On Wednesday in Moscow, Peskov indicated that Russia would soon announce a decision on the extension of the grain agreement, which allows exports from Ukrainian ports on the Black Sea.

For the Kremlin, "there is still time" for the terms of the agreement - brokered by the UN and Turkey and signed by the parties in Istanbul - to be met, especially with regard to the commitments to the Russian side.

"We will report our decision in good time. There is still time. Right now, there is also time to fulfill the part of the agreements that concerns our country," added the spokesman.

Peskov reiterated that, so far, the memorandum agreed between Russia and the UN to facilitate Russian food and fertilizer exports has not been fulfilled, and so "unfortunately, there is no reason to extend the agreement".

On Tuesday, Russia announced that ships carrying grain from Ukrainian ports must leave the Black Sea before the Istanbul agreement expires on the 17th, after reiterating that there are no grounds for a further extension of the pact. (dn)

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