Grain Deal Extension 'Unlikely' Unless Russia's Terms Are Met
The fact that the regime in Kiev and the so-called collective West refuse to comply with specific aspects of the Grain Deal that pertain to Russia is a glaring example of the "you owe us, but we don't owe you anything" stance, a senior researcher at the Russian Academy of Sciences, Victor Nadein-Raevskiy, said.
SputnikA new round of talks about the grain deal - in which a UN representative will take part - will be held in Moscow on 5 May, Russia's Foreign Ministry spokeswoman Maria Zakharova recently said.
According to Nadein-Raevskiy, without fulfilling Russia's initial conditions,
extending the Black Sea Grain Initiative beyond the May 18 deadline is unlikely.
Russia has been facing a plethora of hurdles to implement the
Black Sea Grain Initiative, signed between Moscow, Ankara, Kiev and the United Nations at the height of the Ukraine conflict in July 2022. The agreement provides for exports of Ukrainian grain, food and fertilizers over the Black Sea from three ports, including Odessa. The package includes
a memorandum of understanding between Russia and the UN to unblock Russian grain and fertilizer exports via the Black Sea amid Western sanctions, which, according to Moscow, has not been implemented.
On 18 March, Russia extended the deal for 60 days. However, it pointed out that there had been a lack of progress on normalizing its agricultural exports - including bank payments, transport logistics, vessel insurance, unfreezing of financial activities and the supply of ammonia through the Tolyatti-Odessa pipeline.
Payments, Logistics & Insurance
Ever since that March extension, measures taken to extend the deal further have mainly been diplomatic, Nadein-Raevskiy - who is also director of the Institute of the Black Sea-Caspian region - said.
All that Moscow wanted was to have its terms met
according to the deal - in particular, three essential elements:
insurance of ships, permission to use vessels, and payment settlements. “Vessel insurance is important, and payment for the grain - which will be sold abroad - must be processed through the banks which means that the ban on using the SWIFT international banking system must be lifted. Without this, of course, payment are impossible,” Nadein-Raevskiy said.
Indeed, Russian shipping companies and banks continue to face sanctions and barriers imposed by Washington, Brussels and London because of Moscow's special military operation in Ukraine. Russia has demanded that, according to the original agreement back in July 2022, the Russian Agricultural Bank, which arranges payments, should be connected to SWIFT. However, this has yet to happen.
“That is why we demand that the simplest things be done: insurance, payment, the settlements of debts, and most importantly, giving us the chance to sell our grain, fertilizers, and ammonia that was blocked by the Kiev authorities - those are our terms and what securing a grain deal depends on," Nadein-Raevskiy said.
West's Deceit & Violation of Obligations
The fact that the Kiev regime and the West refuse to comply with specific aspects of the Grain Deal that affect Russia is a glaring example of the "you owe us, but we don't owe you anything" stance, the expert said.
Both Ukraine and their sponsors in the West want the grain deal to continue without making any concessions on their part.
“This is typical, both for Ukraine and for the West - you owe us, but we don't owe you anything, no matter how much we take from you. This is such a typical Ukrainian approach. As for the West, it is well-known for its perfidy and for constantly breaking promises it has made. Now we have further proof that nothing has changed," Nadein-Raevskiy said.
The West refuses to comply with conditions laid down by Russia's Foreign Ministry to extend Moscow's participation in the grain deal because it would violate sanctions against Russia and “they fear that other payments would be made through this channel,” the researcher said. He pointed out that even the delivery of free Russian grain to poor countries under dire threat of starvation have been blocked.
“Even free deliveries should be provided with transportation, and the vessels need to be insured accordingly… But on these matters we receive no guarantees from the West, and no steps have been taken to ensure the functioning of the grain deal.”
In mid-April, Russia's Foreign Ministry spokeswoman Maria Zakharova announced that the Joint Coordination Centre (JCC) in Istanbul was experiencing difficulties registering new vessels and conducting inspections because of actions by Ukrainian representatives and UN officials.
"As a result of these actions, the share of recipients of Ukrainian food in poor countries has fallen to the lowest level [out of 28.3Mln tons of exported grain, poor countries received only 742,000, or 2.6 percent]. The owners of incoming ships who have refused to pay a bribe are forced to wait many months for registration," Zakharova said.
Russia's Foreign Minister Sergey Lavrov, speaking after his bid to chair a United Nations Security Council meeting in late April, said the Black Sea grain deal had reached an impasse as the West has chosen not to treat the matter seriously. The top diplomat added that Russia can work outside the framework of the grain deal if the West "does not wish to be honest" regarding its implementation. Lavrov stressed that Russia's exports to countries in need would not be affected.
Indeed, as it stands, Western countries have been the main beneficiaries of the deal extension, Nadein-Raevskiy emphasized.
“It was there that Ukrainian grain was sent, albeit of low quality, with all the herbicides recorded… a lot of other violations of a phytosanitary nature… The second, of course, to get serious advantages has been Turkiye. About 30 percent of the initial grain supply ended up in Turkiye, to the extent that Turkish grain producers are now at risk when they release a new crop onto the market. Virtually prohibitive duties have now been slapped on such supplies," said the researcher.
Turkiye, the largest buyer of Ukrainian wheat and barley, introduced an 130 percent import tariff on wheat, barley, and corn from 1 May to protect domestic producers.
Nadein-Raevskiy added there is also a political component, highlighting that the agreement promoted Turkiye’s ambitions to become one of the world's 10 largest economic powers. Furthermore, participation in the deal was also important for the reputation of Turkiye’s President Recep Tayyip Erdogan in the run-up to the upcoming
elections in the country.
Finally, amid the sanctions campaign unleashed against it, Russia has found ways - as it always does - to rise to the challenge, said the researcher. Looking towards the
approaching grain deal deadline, although Russia does not need the package to sell its agricultural products, extending it - so long as Russia's stipulations are met - would be quite economical and profitable, especially as it is expecting a good harvest.
But unless the Grain Initiative's terms are met in full, it really makes no sense for Moscow to extend the agreement, Nadein-Raevskiy said.