Thu | Dec 7, 2023

Russia: West must remove obstacles to its grain exports

Published:Sunday | April 9, 2023 | 12:38 AM
Russia’s Foreign Minister Sergey Lavrov speaks during a joint news conference with Turkish Foreign Minister Mevlut Cavusoglu after their talks, in Ankara, Turkey, on Friday.
Russia’s Foreign Minister Sergey Lavrov speaks during a joint news conference with Turkish Foreign Minister Mevlut Cavusoglu after their talks, in Ankara, Turkey, on Friday.

ANKARA, Turkey (AP):

RUSSIA MAY pull out of a wartime deal that allows the export of Ukrainian grain to global markets, if the West fails to remove obstacles to Russian agricultural exports, Moscow’s top diplomat suggested on Friday.

The deal, which was brokered by the United Nations (UN) and Turkey in July, unblocked shipments that were stuck in Ukraine’s blockaded and mined ports, alleviating rising food prices and the threat of hunger in some countries.

A separate agreement aimed to facilitate the export of Russian fertilisers and grain. Moscow has repeatedly complained that the deal failed to work for Russian agricultural exports, which have had trouble reaching world markets because of Western sanctions.

Speaking at a joint news conference with his Turkish counterpart, Russian Foreign Minister Sergey Lavrov told reporters that Russia agreed last month to extend the deal for 60 days - instead of the 120 days set under a previous extension - to send a warning signal to the West.

“After we extended the deal for 120 days, we saw no indication that those issues could be solved, and grew tired of appealing to the conscience of those who determine it,” Lavrov said of Moscow’s dissatisfaction. ”We made a small escalatory move and offered to extend the deal only for 60 days on the assumption that, if there is no change in removing the obstacles to the exports of Russian fertilisers and grain, we would think whether the deal is needed.”

Lavrov shrugged off the West’s argument that Russian food and fertilisers are not subject to sanctions.

He noted: “... obstacles related to financing, logistics, transportation and insurance of Russian exports have remained and even have grown tougher”.

Experts say private shipping and insurance companies remain cautious about handling Russian commodities amid the war in Ukraine, although Russian wheat shipments were at or near record highs in November, December and January, according to financial data provider Refinitiv.

Lavrov said the West has effectively blocked the UN-Turkey agreement on Russian agricultural exports and “that’s why we’ve asked for letters of comfort from certain governments”.

Instead of agreeing to another extension later this year, Russia may decide to cooperate directly with Turkey and Qatar to ensure grain gets to the countries that need it.

Turkish Foreign Minister Mevlut Cavusoglu, whose country joined the UN and Ukraine in pressing for a 120-day extension before the deal on Ukrainian exports expired last month, said he and Lavrov “agreed that the obstacles to the export of Russian grain and fertiliser should be removed immediately”.

“We value the continuation of the deal,” Cavusoglu said. “This is not only important for Ukraine’s and Russia’s grain and fertiliser exports. It is also important in terms of reducing the world food crisis and especially the problem experienced by every household in the world.”

Lavrov’s warning echoed one from Russian President Vladimir Putin, who said last month that Moscow could end its participation in the initiative, if its conditions were not met. Putin said Russia expected the facilitation of exports of its own agricultural products as part of a package agreement.