“The world cannot afford to let global fertilizer availability problems lead to global food shortages,” the United Nations said Friday night after talks with Russian Deputy Foreign Minister Sergei Vershinin and his delegation in Geneva.
Russia had questioned the continuation of the July grain deal that allowed Ukrainian exports through the Black Sea. Russia had blocked exports since the start of its war of aggression against the neighboring country. The agreement expires on November 19. Before the war, Russia and Ukraine accounted for almost a quarter of world grain exports.
The July agreement, brokered by the UN and Turkey, consisted of two agreements: in addition to Ukrainian exports, it also covered the export of Russian food and manure, despite Western sanctions. But that turned out to be difficult: While the sanctions don’t directly target these exports, their existence makes it difficult for Russian actors to call into European ports, process payments and take out insurance for their ships.
Cargo ship with donated fertilizer reaches Africa
For that reason, the Moscow government had threatened not to renew the agreement. Initially, there was no decision in Geneva on whether or not to proceed. The United Nations later added the following to its initial statement about the meeting: “Participants remain committed to the implementation of the Black Sea Grains Initiative and have had constructive discussions about its continuation.”
The United Nations has not said whether Russia promised to extend the grain deal. However, according to UN information, a cargo ship carrying donated fertilizer will depart for Malawi in Africa in the coming week.
Boubaker Benbelhassen, director of the UN Food and Agriculture Organization’s (FAO) markets and trade division, warned that failure to renew the agreement would have serious consequences. Then prices should rise again and supply from many countries that depend on supply comes to a halt, he said in Geneva.
According to the Grain Agreement Coordination Center, 489 ships left Ukrainian ports on Nov. 11, carrying, among other things, wheat, corn, sunflower oil and soybeans. Since November 1 alone, more than 20 ships have sailed to Lebanon, Morocco, Libya, Spain, Romania and China, among others. According to the information, four ships left on Friday morning. (SDA)
Source: Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
