Africa

'Independent' Supply Chain Needed to Boost Russian Agricultural Exports to Africa, Expert Says

Moscow has repeatedly stated that the Ukrainian grain deal hasn't been fully implemented as most of the ships carrying grain have not reached the poorest countries, but wound up in Europe, and Russian fertilizers have been blocked in European ports for several months. The Russian Foreign Ministry emphasized that the deal needs to be adjusted.
Sputnik
Russia could create "independent" supply chain infrastructure to facilitate distribution of its grain and fertilizers to African countries in order to help them ensure food security on the continent, expert at the Center for African Studies at the National Research University Higher School of Economics, Vsevolod Sviridov, says in an interview with Sputnik.
According to him, the most efficient way of enhancing supplies of Russian agricultural products to Africa is "to remove obstacles" that include some restrictions Russia is currently facing connected to the execution of financial transactions and in some cases lack of logistics capacity, as well as the lack of necessary infrastructure in Africa itself.

"[Russia] is actively using ships chartered in Western logistics companies, it is using supply services of Western traders," he explains.

Sviridov underlines that this kind of cooperation between the country and Western companies is now hampered by secondary sanctions imposed against Russia that prevent third parties from doing business and dealing with the subject of sanctions. The expert stresses that the effects of secondary sanctions can't be easily eliminated, as the efforts of the UN to lift these measures and its abilities to do it are extremely limited, as "traders themselves avoid working with Russian suppliers."
He states that food insecurity, which many African countries are facing now, is largely connected to poor infrastructure in the region.

"The problem of hunger in Africa is primarily an infrastructure problem. There is no infrastructure in ports, no warehouses, the transport infrastructure in many African countries is in the process of being created, there are simply no roads, and there are huge problems even with packaging, especially in sub-Saharan Africa," the expert notes.

He highlights that Russia could assist in addressing infrastructure issues on the continent as Russian investors are interested in financing African infrastructure projects and "are capable of doing it." This could strengthen food security in African states, as well as help Russian companies increase their shares and boost their competitive positions on African markets. According to the expert, the companies thereby won't lose their positions even in the event of some market crises "like what is happening now."

"The problem of food insecurity in Africa existed before the crisis in Ukraine. And when the crisis will be over, even if the grain deal will be in place, the problem will remain," he says.

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Therefore, Russia needs to develop its own comprehensive approaches and initiatives, which will meet the interests of the country and its African partners, the expert suggests. In particular, the Russia-Africa summit scheduled for 2023 provides great opportunities for all interested parties to put forward some initiatives in this field.
According to Russian Foreign Minister Sergei Lavrov, the second Russia-Africa summit will focus on developing ways to expand country-to-continent economic cooperation. It is expected to give a new impetus to Russian-African political, trade, economic, investment, scientific, technical, and humanitarian cooperation.
Asked about the attitude of Western countries towards the possible enhancement of Russian food exports to Africa, he states that the leading food suppliers, for example, the United States and France, on the one hand, are seeking to oust Russian companies from the continent's food markets.
But on the other hand, Western countries cannot fully meet the needs of Africa in terms of food security, "this is why they are interested in maintaining Russian food supplies" to the continent, because it will contribute to ensuring food security and therefore social and political stability on the continent, specifically in its western part.
"Food insecurity worsens socio-political situation in West Africa, and this, in turn, leads to the growth of migration flows to European countries. It is something the European Union is not interested in," he explains.
Sviridov also notes that Russia insists on certain adjustments to the grain deal in order to make sure that grain supplies reach the poorest countries, in particular those in Africa, as was initially agreed. Moscow recently stated that it had contacted African countries and the African Union about providing fertilizer supplies free of charge, as the unblocking of Russian fertilizers in European ports was part of the deal.
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It should be taken into account, he highlights, that in the text of the agreement, signed by representatives of Russia, Turkey, Ukraine, and the UN, "there is no direct mention of where the grain should be sent, it only stipulates that that grain and food should go to those countries that demand it, there is not a single word about Africa."
At the same time, he agrees that the deal has positively affected African countries, as it has already made a significant contribution to the stabilization of the global market.
"And, finally, the African leaders are not opposed to the deal, they don't criticize it. Yes, they argue that severe food problems still constitute a major threat to the continent, but suggest that the issues were caused by a number of factors, including lack of infrastructure," he concludes.
The grain deal was signed on July 22 to provide a humanitarian maritime corridor for ships with food and fertilizer exports from Ukrainian Black Sea ports. The agreement consists of two package documents. The first one stipulates the obligation of the UN to remove restrictions on the export of Russian agricultural products and fertilizers. The second defines the algorithm for the export of Ukrainian agricultural products.
Moscow has repeatedly pointed out that the first part of the grain initiative is not working. Moreover, Russian President Vladimir Putin has said that most of the ships carrying Ukrainian grain had not reached the world's poorest countries, but had wound up in Europe. This contradicts the initial intentions of the deal to help those countries which are in need of food supplies, in particular in Africa, with some of them facing severe food shortages, being on the brink of famine.
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