Putin: No New Grain Deal Until West Fulfills Commitments to Facilitate Russian Ag Exports

Russia continues to explore free grain plan and other ideas

Russian President Vladimir Putin announced that the grain deal permitting Ukraine to export grain through the Black Sea will not be reinstated until the West fulfills its commitments to facilitate Russian agricultural exports.

     Putin’s decision comes after discussions with Turkish President Recep Tayyip Erdogan, who, along with the U.N., played a role in brokering the deal, which was significant for global food supplies in regions such as Africa, the Middle East, and Asia. The deal was not extended in July due to Russia's perception that promises to remove obstacles hindering Russian food and fertilizer exports were not honored.

     Russia demands an easing of its exports of food and fertilizer, which have been hit as banks, insurers and shipment companies steer clear of Russian goods, while Baltic nations have ceased handling Russian volumes through their ports. Russia also wants to reopen an ammonia pipeline that traverses Ukraine and reconnect Rosselkhozbank, a state-owned lender focused on agriculture, to the SWIFT system for international payments. Russia says it will not reopen the trade corridor unless its conditions are met.

     Putin said the deal could be revived if these commitments were met.

     Russia has explored the possibility of providing free grain to six African countries and intends to ship a significant amount of grain to Turkey for processing and distribution to impoverished nations. Russia has put forward a plan suggesting the sale of 1 million tons of its grain to Turkey at a favorable price. The idea involves processing the grain in Turkey and then sending it to countries requiring it. This proposal was deliberated during a recent meeting between the foreign ministers of Russia and Turkey. Furthermore, the deal is supplemented with the possibility of financial assistance from Qatar. However, Ukraine's Foreign Ministry has raised concerns regarding any agreement that could enable Russian exports without simultaneously addressing the issue of Ukraine's maritime access. They argue that such a deal might embolden Russia to persist in its aggressive actions.