Economy

UN Seeks Assurances for Russia to Resume Grain Deal

UN Seeks Assurances for Russia to Resume Grain Deal

UN Secretary-General António Guterres announced on Thursday that the United Nations is "working hard" to improve Russia's grain and fertilizer exports in a bid to persuade Moscow to allow safe exports of Ukrainian grain from the Black Sea once again. Guterres told reporters on the sidelines of the ASEAN summit in Jakarta, "We believe it is necessary to establish a system of mutual guarantees." He added, "Guaranteeing that the Russian Federation is indeed able to overcome the difficulties that still exist, although many of them have been resolved, while at the same time ensuring that we can restore the Black Sea Initiative."

Last week, Guterres sent a "set of specific proposals" to Russian Foreign Minister Sergei Lavrov aimed at reviving the Black Sea grain deal from which Russia withdrew in July after a year of mediation by the UN and Turkey. Moscow has complained that its agricultural exports face obstacles and that not enough Ukrainian grain is reaching countries in need under the Black Sea agreement. Both Ukraine and Russia are among the largest grain exporters.

The Black Sea grain deal aims to address the global food crisis exacerbated by Russia's invasion of Ukraine in February 2022. Russia's grain and fertilizer exports are not subject to Western sanctions; however, Moscow stated that restrictions on payments, logistics, and insurance pose obstacles to shipping.

On Wednesday, the Russian Foreign Ministry rejected the UN's attempt to revive the Black Sea agreement, labeling it as a "new dose of promises." It stated that the proposals made by Guterres in his letter to Lavrov included "reconnecting a subsidiary of the Russian Agricultural Bank to the SWIFT system, establishing an insurance platform, releasing foreign assets of Russian fertilizer producers, and enabling our ships to enter European ports." The ministry noted, "In return, they want Russia to guarantee the immediate and full resumption of the Black Sea Initiative." A UN official, speaking anonymously, confirmed the Russian description of the UN proposals.

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