UNITED NATIONS (Reuters) – United Nations Secretary-General Antonio Guterres is anxiously awaiting a response from Russian President Vladimir Putin regarding the proposal to extend the Black Sea grain export deal beyond Monday, according to a U.N. spokesperson on Friday.
Guterres sent a letter to Putin on Tuesday, offering to extend the Black Sea deal in exchange for connecting a subsidiary of Russia’s Agricultural Bank (Rosselkhozbank) to the international payment system SWIFT, sources informed Reuters.
The final ship operating under the Black Sea deal is currently being loaded at Ukraine’s Odesa port. Since June 27, Russia has not agreed to register any new ships, and if Moscow does not agree to an extension, the initiative will expire on Monday.
Concerning the situation, Russia has threatened to withdraw from the agreement, brokered by the U.N. and Turkey in July 2022. Moscow claims that its demands to enhance its grain and fertilizer exports have not been met. It is worth noting that both Ukraine and Russia are among the leading grain exporters globally.
Under the arrangement, Ukraine has exported over 32 million metric tons of corn, wheat, and other grains. Russia criticizes that the deal has not adequately benefited impoverished nations. In contrast, the U.N. argues that it has significantly contributed by lowering global food prices by more than 20%.
“Discussions are underway, with messages being exchanged via WhatsApp and Signal. We are also anticipating a response to the letter,” stated U.N. spokesman Stephane Dujarric when asked about ongoing negotiations, according to reporters.
As of Friday, Russia has not made any statements regarding the extension of the Black Sea grain deal, as the Kremlin confirmed. The confusion arose after Turkish President Tayyip Erdogan stated earlier that he was in agreement with Putin to extend the deal.
According to TASS news agency, Putin mentioned on Thursday that he had not seen the letter from Guterres proposing an extension, but Russia is in contact with U.N. officials.
On Friday, U.S. Secretary of State Antony Blinken urged Russia to extend and expand the Black Sea deal. He accused Russia of using the agreement as a “weapon” by threatening to terminate it.
Blinken stated in a news conference in Jakarta, “If Russia is not going to end its horrific war of aggression against Ukraine, at the very least it could extend the Black Sea Grain Initiative so that these food products can get out to the world, keeping prices down, keeping supply up.”
In order to persuade Russia to agree to the Black Sea deal, a three-year memorandum of understanding was signed in July 2022, in which U.N. officials committed to assisting Russia in exporting its food and fertilizer to foreign markets.
Although Russian food and fertilizer exports are not impacted by Western sanctions imposed after the invasion of Ukraine, Moscow argues that restrictions on payments, logistics, and insurance pose significant barriers to shipments.
A crucial demand from Russia is the reconnection of Rosselkhozbank to SWIFT. The European Union (EU) severed its ties with the bank in June 2022 following Russia’s invasion of Ukraine in February 2022. Discussions are underway at the EU to potentially link a Rosselkhozbank subsidiary to SWIFT, thus enabling grain and fertilizer transactions, as sources familiar with the matter affirmed on Wednesday.
(Reporting by Michelle Nichols; Editing by Will Dunham)
Credit: The Star : News Feed
