Can Ukraine’s grain corridor ease the global food crisis? | – #Ukraines #grain #corridor #ease #global #food #crisis
LONDON, February 14 (Reuters) – Moscow UNsupported by and of Ukraine It is unclear whether it will extend its participation in the initiative, which allows grain exports from Black Sea ports.
Russia said on Monday that the sanctions applied against Moscow after its aggression against Ukraine on February 24 of last year village if the sanctions affecting the export of agricultural products are not removed, the extension of the Black Sea grain agreement will be “inappropriate”.
of Ukraine of grain exports from southern Black Sea ports free the agreement was extended for 120 days on November 17.
Sources familiar with the matter, who spoke on condition of anonymity, said that the contract for the continuation of exports is March at the latest. 20– said how much it needs to be updated.
Acquired last July, it created a protected maritime transit corridor and is a major producer of grains and oilseeds of Ukraine was intended to alleviate global food shortages by allowing exports from its three ports to resume.
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WHAT IS EXPORTED?
Within the framework of the pact to establish a safe shipping channel 10 21.1 million tons, including million tons of corn village agricultural products were transported.
Wheat deliveries reached 6 million tons, which is 28% of the total volume. Other commodities shipped include rapeseed, sunflower oil, sunflower meal and barley.
For a complete breakdown of exported countries and quantities:
https://www.un.org/en/black-sea-grain-initiative/vessel-movements
HOW CAN THE CONTRACT CHANGE?
Russia in return for his continued support of the pact village tries to remove sanctions against the export of agricultural products.
Agricultural exports have not been overtly targeted by the sanctions, but Moscow says blocks in its payments, logistics and insurance industries are obstacles to its grain and fertilizer exports.
Among its demands, Russia is believed to want the West to ease restrictions on state agricultural lender Rosselkhozbank, which should ease Russian exports.
Ukraine has not made public any changes it is seeking, but has tried unsuccessfully to expand the deal to include more ports ahead of the November deal.
The three ports participating in the agreement – Odessa, Chornomorsk and Pivdennyi – have a combined capacity of about three million tons of cargo per month.
Ukraine It wanted to include the ports of the southern Mykolaiv Oblast, which supplied 35% of Ukraine’s food exports before the Russian invasion.
Mykolaiv was Ukraine’s second-largest grain terminal based on 2021 shipment data, so its addition would allow larger volumes of grain and oilseeds to be shipped.
Ukraine separately requested a one-year extension of the deal and a simplified inspection regime.
HUNDRED FOOD CRISIS?
Global food prices The decrease in shipments from Ukraine, the main exporter, played a role in the crisis.
Other factors include both Argentina and USAThese include the COVID-19 pandemic and climate shocks that continue to challenge agricultural production, including droughts in
The corridor has led to a partial recovery of shipments from Ukraine, but they remain well below pre-occupation levels and will not fully recover in the near future.
Transporting grain to and from ports is difficult and expensive, and Ukrainian farmers have cut back on crops such as wheat after selling last year’s crop at a loss in many cases due to very low domestic prices.
GLOBAL WHEAT PRICES LOWER?
Following Russia’s invasion of Ukraine on February 24, 2022, wheat at the Chicago Board of Trade prices increased sharply.
Prices are now near pre-conflict levels, as Ukraine’s ability to export millions of tonnes of wheat through the corridor has helped keep prices down.
Other factors include a record harvest last year in major exporter Russia, a gloomy global economic picture and a strong dollars includes.
Bread and prices of wheat-based food products such as noodles are still well above pre-invasion levels in many developing countries, despite falling Chicago futures, as weak local currencies and high energy prices have driven up costs such as transportation and packaging.
WHAT ABOUT SEA MINES?
Russia and Ukraine accuse each other of placing sea mines that float around the Black Sea and pose a significant threat. A crew member of the Sierra Leone-flagged Razoni, the first ship to pass through the corridor on August 1, described them as a nuisance.
The mines have been drifted far from the coast of Ukraine and have been found in Bulgaria, Romania and Turkey military the diving teams neutralized some of those who remained in the water.
It could take months to clean up the rest, and there wasn’t enough time to do it before the grain pact went into effect.
WHAT ABOUT INSURANCE?
Russia, which oversees the deal, TurkeyUkraine and UN The Istanbul-based Joint Coordination Center, made up of officials, published procedures in the shipping channel in August to address the concerns of insurers and shipowners.
Insurers initially said they were willing to provide insurance for international naval escorts if there was a clear strategy for combating sea mines and measures.
Since then, they have made provisions to provide insurance, including provisions for ships to remain in the corridor during transit or risk voiding their policies.
Following a July 22 deal, Lloyd’s of London insurer Ascot and broker Marsh ( MMC.N ) have created a marine cargo and war insurance facility for grain and food products shipped out of Ukraine’s Black Sea ports.
However, the total cost of insurance, which includes separate segments of insurance for ships sailing to Ukrainian ports, is likely to remain high.
This has been complicated by insurers having to cover more risk after reinsurers introduced exemptions for Belarus, Russia and Ukraine earlier this year, meaning more risk for insurers and potentially less appetite to cover the burdens.
WHAT ABOUT THE CREWS?
In September, Ukraine implemented a decree allowing its seafarers to leave the country despite wartime restrictions, aimed at exporting Ukrainian grain and providing labor for the wider global shipping industry.
From all over the world at the beginning of the conflict 20About 00 sailors remained in Ukrainian ports.
According to industry estimates, more than 300 crew members remain in Ukraine.
Reporting by Nigel Hunt and Jonathan Saul in London and Pavel Polityuk in Kyiv Editing by Angus MacSwan, Alex Richardson and Barbara Lewis
Our standards: Thomson Reuters Trust Principles.
Nigel Hunt
2023-02-14 17:32:03
Source – reuters
Translation“24 HOURS”