Ukraine, despite the ship, has problems with the export of grain

Adeyemi Adeyemi

Global Courant 2023-04-19 22:06:07

Inspections of ships carrying Ukrainian grain from the Black Sea have resumed under a UN-brokered deal, but Kiev struggles to secure an extension of the deal and faces a widening import ban in Eastern Europe .

Bulgaria on Wednesday became the fourth European Union member state in the region to block grain imports from Ukraine in hopes of protecting local farmers after an influx of cheaper supplies since Russia’s invasion of Ukraine last February.

But there was some relief for Kiev when Romania, a major trading partner, stopped banning imports even as it tightened controls on the transit of Ukrainian grain.

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Kiev and its allies blamed Moscow for the latest halt to ship inspections in the Bosphorus this week, which in turn blamed Ukraine and the United Nations.

Ukrainian Deputy Prime Minister Oleksandr Kubrakov wrote on Facebook that “ship inspections are resumed, despite the efforts of the RF (Russian Federation) to disrupt the agreement”.

The Joint Coordination Center in Istanbul, which oversees operations, said “inspections are already underway”.

Ships await inspection under the United Nations Black Sea Grain Initiative in the southern anchorage of the Bosphorus in Istanbul, Turkey (File: Yoruk Isik/Reuters)

The Black Sea Grain Initiative, brokered last July by the UN and Turkey, unblocked three Ukrainian Black Sea ports five months after Russia’s invasion.

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The deal was designed to ease a global food crisis and to support Ukraine, whose economy relies heavily on agricultural exports.

Russia has said it committed to the initiative only until May 18, complaining that a separate agreement designed to facilitate its own exports of agricultural products and fertilizers — which are not covered by Western sanctions against Moscow — was not being adhered to.

Ukraine’s Agriculture Minister Mykola Solsky told reporters that talks were underway to extend the deal next month. But when he made it clear that no immediate breakthrough was expected, Solsky said, “Let’s give them time.”

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He gave no details of the talks. Russian Foreign Minister Sergey Lavrov will discuss the grain export deal with UN Secretary General Antonio Guterres next week in New York.

Import bans

Kiev has also been trying to reach an agreement with several countries to lift the recently announced restrictions on imports of Ukrainian grain and food products.

Ursula von der Leyen, President of the European Commission, wrote a letter to the leaders of Poland, Hungary, Romania, Slovakia and Bulgaria with a set of proposals that she said “specifically address the concerns of frontline Member States and stakeholders, including farmers , and enables us to react even faster in the future”.

The letter acknowledged the problems farmers faced after the EU lifted duties on Ukrainian grain to facilitate exports when Russia’s war in Ukraine choked shipments through traditional routes. The easing of tariffs led to unintended increases in exports and, as a result, lower prices that affected farmers’ incomes.

The European Commission’s proposals, which were to be further elaborated in talks later on Wednesday, built on an initial €56.3 million ($61.7 million) support package for the most affected farmers in frontline countries, with the option of a second package of 100 million euros ($109.3 million).

The EU is also preparing more technical measures to prevent farmers’ concerns from turning into a geopolitical issue that would make the EU appear weak and divided as Russia continued to occupy large parts of neighboring Ukraine.

Bulgaria on Wednesday became the latest European country to temporarily ban imports of Ukrainian grain and other agricultural products, with the exception of transit goods destined for export to other countries.

Hungary, Poland and Slovakia introduced similar bans, but Warsaw went further than others by also banning the transit of Ukrainian grain through its territory.

Poland on Tuesday agreed to lift the transit ban after talks with Kiev and the transit of Ukrainian grain will resume at midnight on Thursday, Poland’s development ministry said Wednesday by state news agency PAP.

Poland and Romania will now check and seal Ukrainian grain shipments passing through their territory, a measure that is insufficient to satisfy all Ukrainian farmers.

“We don’t know what the process will be, how it will work and what will work,” Volodymyr Bondaruk, a farmer in western Ukraine, told Reuters.

“This will allow large and medium-sized farms to sell their products, but it will be very difficult for small farmers.”

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