Ukraine said 12 ships carrying grain left its Black Sea ports on Monday, despite Russia’s withdrawal from a UN-backed deal that allowed millions of tons of grain to pass through during the all-out invasion of Moscow. Said he left.
The United Nations and Turkey, which jointly brokered the so-called Black Sea Grains Initiative in July, approved the resumption of shipments that had been halted on Sunday.Russia’s decision on Saturday rocked global markets and boosted wheat prices.
Ukraine’s Minister of Infrastructure Oleksandr Kublakov said on Monday that “12 ships have left Ukrainian ports” and four more are heading to the Ukrainian coast for loading.
“The UN and Turkish delegations are providing 10 inspection teams to inspect 40 ships aiming to realize the Black Sea Grain Initiative. This inspection plan was accepted by the Ukrainian delegation. The Russian delegation has been notified,” he wrote on Twitter.
It is not clear how Russia will respond to Monday’s shipment. Dmitry Peskov, a spokesperson for Russian President Vladimir Putin, has questioned the feasibility of continuing Ukrainian grain exports by sea without Russia’s backing.
“In a situation where Russia says it is impossible to guarantee the safety of navigation in these regions, such a deal is almost unfeasible and takes on a different character. It’s dangerous and not guaranteed,” Interfax quoted him as saying.
He did not say whether Russia would try to stop such shipments, but he said that “contacts with the Turkish side and with the United Nations through diplomatic and other branches continue.”
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Lloyd’s of London insurer, which provides insurance for grain and other food shipped out of Ukraine under the Black Sea Agreement, said it was suspending quotes for new shipments until a new deal was agreed. .
Chris McGill, head of ocean freight underwriting for insurance company Ascot, said the policies already issued are still in effect. “We hope that the negotiations will be successful and we will be able to resume citations.”
Russia on Saturday suspended its participation in a deal that included joint inspections of ships in Istanbul after what it claimed was an attack on Ukrainian naval vessels in Sevastopol, a Crimean port Russia annexed in 2014. announced its decision to stop.
Turkish President Recep Tayyip Erdogan said he would try to restore the deal. “Russia is hesitant on the issue, but we will resolutely continue our efforts to serve humanity,” he said in a speech on Monday.
Turkish Defense Minister Hulusi Akar told the Russian Defense Minister.
Sergei Shoigu on Monday said Moscow expected its “rethink”.
Decision to withdraw from pact because grain initiative must
Separated from the conflict, according to his statement
office.
Turkey’s close ties with Kyiv and Moscow served as Turkish mediators
UN-backed July deal and more than 9 million tonnes
Since then, Ukrainian wheat and corn have sailed through the Black Sea.
Wheat futures on the Chicago Board of Trade climbed 7.7% to $8.93 per bushel on Monday morning before trading up 5.7% to $8.29 per bushel. Corn prices rose about 3 percent to $7 a bushel.
Analysts have warned that Russia’s withdrawal from the pact would hurt poor countries, and the International Relief Commission said it would have “devastating consequences” for food supplies.
Under the agreement, Moscow guaranteed the safe passage of cargo ships carrying grain from previously blocked Black Sea ports. The suspension immediately affected 218 of her ships, Ukrainian officials said. Of these, 95 had already set sail, 101 were waiting to be picked up with grain, and 22 were loaded and waiting to set sail.
The United Nations, Turkey and Ukraine, which have been working with Russia to move grain through the Black Sea, have informed Moscow that 16 ships will transit the grain corridor on Monday. The United Nations said some of these ships have sailed.
Saturday’s Kremlin announcement surprised grain traders and analysts. They wondered if the July deal would last beyond the mid-November deadline, but they didn’t expect the abrupt end.
Dennis Woznesenski, agriculture analyst at Rabobank, said the short-term impact of Russia’s move is showing up in higher prices and could persist if trade doesn’t pick up.
Long known as Europe’s breadbasket, Ukraine is the world’s fifth largest wheat exporter. “If you are a Ukrainian farmer, the longer this goes on, the less incentive you have to plant, because there is no export market,” Voznesenski said.
Additional reporting by Robert Wright in London and Nic Fildes in Sydney
