Russia Threatens Again to Withdraw from the Grain Deal

Further extension of the grain deal “will depend on the progress in meeting the modalities in the context of the Russia-UN memorandum implementation.” Russia’s Ministry of Foreign Affairs reiterated that the Black Sea ‘grain initiative’ on Saturday, March 18, was extended for 60 days, not 120. In addition, the Russian Federation again spoke of the possibility of withdrawing from the agreement. “Due to the lack of progress in the implementation of the Russia-UN memorandum on the normalization of domestic agricultural exports, Moscow decided to reduce the period of another extension to 60 days, that is, until May 18,” the Russian Foreign Ministry said in a statement. The Russian Foreign Ministry noted that it “officially communicated its position to the Turkish and Ukrainian sides and representatives of the UN”. “There were no formal objections. Thus, the agreement continues to operate for the next two months in the existing parameters, without any changes regarding the ports involved, the nomenclature of cargoes and the agreed order of inspections,” the Russian Foreign Ministry said. The Russians stressed that further extension of the grain deal “will depend on the progress in meeting the modalities in the context of the Russia-UN memorandum implementation.” In particular, Russia demands the reconnection of Rosselkhozbank to SWIFT; the resumption of supplies of agricultural machinery, spare parts and service; lifting insurance and reinsurance restrictions and lifting the ban on access to ports; the resumption of the Tolyatti-Odessa ammonia pipeline work; the unblocking of foreign assets and accounts of Russian companies related to the creation and transportation of food and fertilizers. Without progress on these requirements, Russia threatens to withdraw from the “grain initiative.” On 18 March, it was reported that Ukraine reached agreements with Turkey and the UN to extend the grain deal for another 120 days. Russia, in its turn, said that it extended the grain deal for only 60 days. It is worth noting that there are two documents on the grain corridor. One was signed by the UN, Turkey and Russia, and the other, the mirror one, was signed by the UN, Turkey and Ukraine. The grain agreement was concluded in July 2022 and extended for 120 days in November. It expired on March 18. Ukraine was in favor of extending the deal for one year at a time and proposed to extend it to include the port of Nikolaev.