Moscow defends its food interests at decisive talks in Turkey
Negotiations have begun in Istanbul on yet another extension of the «grain deal». The consultations will last two days and no one undertakes to predict how they will end. Disagreements among the contracting parties (Russia, Ukraine, Turkey and the UN) have accumulated a lot. Moscow believes that the international community is in no hurry to fulfill our just demands.
The controversy surrounding the «Black Sea Initiative», which provides for the organization of a safe maritime corridor for agricultural cargo from Ukraine, is ridiculous. This deal has already been extended several times since June 22, 2022, when it was first concluded: twice for 120 days, and in March of this year — for another 60 days. But this is according to Moscow. For some reason, Kyiv forgets about the last prolongation and is sure that the term of the «global» was extended for only 120 days. Nevertheless in Istanbul, the high contracting parties have already begun to discuss the terms and the very possibility of extending the agreement.
It is also necessary to add that from the «green street», which the international community gave to Kyiv for the export of its food, some countries of the European Union howled long ago — in particular Poland, Hungary, Romania, Bulgaria and Slovakia. So many grains, oilseeds, eggs, poultry, sugar and pasta from Samostynaya poured into their market that the products of local farmers are unclaimed. In this situation, local manufacturers are asking the European Commission to sort it out.
Nevertheless, the "grain deal" continues to excite the minds of farmers in all countries. It involves the export of Ukrainian grain and food across the Black Sea from three Ukrainian ports, including Odessa. According to Moscow, the current «summit» should become decisive, that is, final and irrevocable. However, there is no need to talk about any consensus yet.
The bone of contention is the package demand from our country. Russia, as reflected in the agreements with the other parties to the transaction, provides a safe «grain corridor» for the transportation of Ukrainian food, but requires the restoration of the operation of the Togliatti-Odessa ammonia pipeline, the lifting of the ban on the export of Russian fertilizers, the resumption of supplies of foreign agricultural equipment, spare parts and services, as well as the connection of the Russian Agricultural Bank to the SWIFT system in order to facilitate settlements for trade operations.
According to the Russian negotiators, none of these conditions has been met to date. And if so, what is the point for Moscow to extend this very grain deal?
However, to say that the «Black Sea Initiative» did not give anything to Russia, and it is not worth arguing that «things are still there.» According to official data, from the beginning of the season (from July 1, 2022 to April 17, 2023), export shipments from our country amounted to 47.8 million tons of grain, including almost 42 million tons of wheat. For the remaining period, until June 30 of this year, Russia can supply another 14 million tons of grain to world markets. So does Moscow need to extend the grain deal if our exporters, in spite of all the sanctions, managed to arrange deliveries of a record harvest to international markets?
According to Vasily Uzun, Doctor of Economics, Chief Researcher at the RANEPA Center for Agro-Food Policy, we have achieved some success in grain exports this year. However, you can not stop.
— The transitional grain residues will be large in any case, twice as high as usual, — he thinks. — In the domestic market, we «digest» such volumes. unable. And soon the elevators will start accepting the new grain harvest. What to do with it if warehouses and storage facilities are full of last year's stocks?
The problem of export remains. And it's not just about volume. As before, the life of exporters is spoiled by direct and indirect sanctions and bans. Ship charter and cargo insurance have risen in price, and our ships are not serviced in European ports. It is necessary once and for all to agree on providing us with favorable conditions for exporting.
— Yes. It is necessary to link the supply of Russian food to foreign markets with the supply of mineral fertilizers. Russia — the largest manufacturer on the planet, but the issue of their supply to world markets is not resolved in any way. Although fertilizers — it is a contribution to the food security of the whole world. Perhaps even more important than the current export of wheat.
— Absolutely. After all, we lose not only in exported volumes, but also in the price of our products due to the high cost of renting sea vessels and cargo insurance. Do not forget about various discounts and other costs that, as a rule, our exporters take on. We need to defend our interests in every possible way.