UN worried as clock ticks on Ukraine grain export deal

The United Nations said on Wednesday that it was "worried" about the survival of a grain exports deal for Ukraine, which could collapse within a fortnight, threatening food security for the world's most vulnerable.

The Black Sea Grain Initiative aimed at easing a global food crisis is set to expire on July 17 unless Russia, which is pressing an invasion of Ukraine launched in February 2022, agrees to its renewal.

But Moscow remains unhappy about the operation of the deal's parallel agreement on Russian food and fertiliser exports, and said on Tuesday that it saw no reason to extend the BSGI.

"No doubt we are worried because the two agreements signed in Istanbul are very important for food security and for the developing countries in the global south," Rebeca Grynspan, head of the UN's trade and development agency UNCTAD, told reporters in Geneva.

UNCTAD has been a major player in brokering the deals.

Russia's invasion of Ukraine saw Ukraine's Black Sea ports blocked by warships until the agreement, signed in July 2022, allowed for the passage of critical grain exports.

The initial 120-day agreement struck with the UN and Turkey last July has been extended three times: in November, March and in May.

The parallel agreement, between Moscow and the UN, is aimed at facilitating the export of Russian food and fertilisers, which are exempt from Western sanctions imposed on Moscow over the Ukraine war.
UN considers Moscow trip

"We need both, to continue bringing prices down and have stable markets of food and fertilisers in the world," Grynspan said.

"The United Nations remains committed to making every effort for the continuation of the agreements. They remain our main concern and we hope that we can ensure their extension for the benefit of the most vulnerable countries and the most vulnerable people in the world.

"We will continue during the days and hours still left with our efforts to make that happen."

Ukraine was one of the world's top grain producers, and the deal has helped soothe the global food crunch triggered by the conflict.

Some 32.8 million tonnes have been exported so far under the agreement, according to the UN.

Just over half of the exports have been corn, while more than a quarter have been wheat.

Grynspan said consultations with a Russian delegation had taken place in Geneva.

"We will consider, yes, going to Moscow in the days that are left, but that has not been confirmed yet," she added.

Russia said Tuesday that the Moscow-UN deal had "continued to degrade", blaming the problem on secondary effects of Western penalties on shipping and insurance companies as well as banks.

But Russia claims this parallel agreement is not being upheld.