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Tuesday, July 18, 2023

UN chief regrets Russia’s decision to withdraw from Ukraine grain deal

On Monday, UN secretary general Antonio Guterres expressed regret over Russia’s decision to terminate the Black Sea Grains Initiative.

• July 18, 2023
Russian President Vladimir Putin
Russian President Vladimir Putin [Photo Credit: Financial Times]

On Monday, UN secretary general Antonio Guterres expressed regret over Russia’s decision to terminate the Black Sea Grains Initiative, in effect ending a “lifeline” for hundreds of millions worldwide facing hunger.

Following weeks of negotiations, the UN-brokered accord that facilitated the export of more than 30 million tonnes of Ukrainian grains to global markets via three Black Sea ports expired on July 17.

“Today’s decision by the Russian Federation will strike a blow to people in need everywhere,” Mr Guterres said while speaking to journalists at UN headquarters in New York.

Russia, Ukraine, Türkiye and the UN agreed to the Black Sea initiative in Istanbul in July 2022, along with a parallel accord between the UN and Russia on grain and fertiliser exports from that country.

By its decision, Russia has also withdrawn security guarantees for ships navigating in the northwestern part of the Black Sea.

“Ultimately, participation in these agreements is a choice. But struggling people everywhere and developing countries don’t have a choice,” Mr Guterres stressed.

The grains initiative and the memorandum of understanding with Russia were “a lifeline for global food security and a beacon of hope in a troubled world,” he said.

“At a time when the production and availability of food are being disrupted by conflict, climate change, energy prices and more, these agreements have helped to reduce food prices by over 23 per cent since March last year,” he added.

He noted that the World Food Programme shipped 725,000 tons to support humanitarian operations in Afghanistan, the Horn of Africa and Yemen, relieving hunger in some of the world’s hardest-hit regions.

Mr Guterres said he was aware of obstacles in the foreign trade of Russian food and fertiliser products and that he had written to President Vladimir Putin with a new proposal to keep the Black Sea Initiative alive.

Quoting extensively from the letter, he noted that since the signing of the MoU, and measures adopted by the government, Russia’s grain trade had achieved high export volumes, and fertiliser markets were stabilising, with Russian exports nearing full recovery.

The letter also outlined UN action to facilitate trade amid sanctions against Russia, such as securing licenses from the United States, the United Kingdom and the European Union and providing clarifications and guidance to the private sector.

The secretary-general’s letter also explained how the UN had worked to find dedicated solutions across the banking and private sectors, which included building a “bespoke payments mechanism” for the Russian Agricultural Bank outside the SWIFT international banking network.

According to the letter, Moscow had explained that SWIFT access by the bank was a key factor influencing its decisions.

Mr Guterres said he was deeply disappointed that his proposal went unheeded.

Though lamenting the Russian decision, the secretary general was adamant that it would not stop efforts to get food products and fertilisers from Ukraine and Russia to international markets.

Mr Guterres said he would remain focused on advancing global food security and global food price stability, “taking into account the rise in human suffering that will inevitably result from today’s decision.”

Responding to the collapse of the landmark deal, UN General Assembly President Csaba Kőrösi reiterated his call for the parties to return to dialogue.

(NAN)

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