Russia threatens to pull out of Ukraine grain deal

Vladimir Putin, the Russian president, says that grain supplies should be increased to the poorest countries. He pointed out that exports from Russia, Ukraine and Belarus are currently being mediated by both Turkey and the United Nations.

“Our European partners have long been telling us about the need to resume supplies, including from Ukraine, and above all in the interests of the poorest countries,” he said.

According to him, of the first 87 vessels that had left Ukrainian ports carrying grain, 32 remained had remained in Turkey, three went to South Africa, three to Israel, seven to Egypt, 30 to the European Union, and only two ships headed for countries that were receiving help under UN food programmes — Yemen and Djibouti. These latter two carried 60,000 tonnes of grain, or just 3% of the total.

Between May and August, the Russian Federation supplied 6.6mt (million tonnes) of wheat, barley and corn to world markets of which 6.3mt went to Asia, Africa and Latin America. This figure is expected to increase to 30mt by the end of the year, although could leap to 50mt if required.

In the same four-month period, Russia also exported 7mt million tonnes of potash, nitrogen and compound, or mixed fertilizer, of which around 3mt went to Asia, Africa and Latin America.

“We can supply about 2mt of ammonia, which can be used to make large amounts of fertilizer, which in turn can be used to produce massive wheat crops,” he claimed.

The European Commission has lifted sanctions on the supply of Russian fertiliser, although this can only be bought by EU countries. Russia is prevented from selling fertilizer to developing economies via European ports, which Putin regards as an act of discrimination. Barry Cross

The deal brokered in July this year to allow Ukraine to resume grain exports from Black Sea port is under threat, as Russia decides whether or not to pull out of the deal. The agreement paved the way for Ukraine to resume grain exports from Black Sea ports that had been under a Russian naval blockade since Moscow invaded Ukraine and for Russia to resume exports of its own grain and fertilizer.

Russia’s ambassador to the United Nations in Geneva, Gennady Gatilov, has warned that if the conditions set by the Russian Federation are not met, Russia may refuse to renew the deal next month.

Moscow has reportedly delivered a list of complaints in a letter to UN Secretary-General Antonio Guterres, but declined to make public a copy of the letter.

During a call with French President Emmanuel Macron, Russian President Vladimir Putin complained that Western sanctions were hindering supplies of Russian food and fertilizers to Africa, Latin America, and the Middle East, according to the Kremlin.

In an interview with Reuters, Gatilov said, “If we see nothing is happening on the Russian side of the deal – export of Russian grains and fertilizers – then excuse us, we will have to look at it in a different way,” he said.

Asked if Russia might withhold support for the grains deal's renewal over the concerns, he said: “There is a possibility... We are not against deliveries of grains but this deal should be equal, it should be fair and fairly implemented by all sides.”