Sunday, July 6, 2025
  • Login
Euro Times
No Result
View All Result
  • Home
  • Finance
  • Business
  • World
  • Politics
  • Markets
  • Stock Market
  • Cryptocurrency
  • Investing
  • Health
  • Technology
  • Home
  • Finance
  • Business
  • World
  • Politics
  • Markets
  • Stock Market
  • Cryptocurrency
  • Investing
  • Health
  • Technology
Euro Times
No Result
View All Result

Russia Reluctantly Agrees to a Two-Month Extension — Global Issues

by Global Issues
March 22, 2023
in World
Reading Time: 5 mins read
A A
0
Home World
Share on FacebookShare on Twitter


Black Sea Grain Initiative has been renewed – for now. Credit: Ihor Oinua/Unsplash
  • by Alexander Kozul-Wright (geneva)
  • Wednesday, March 22, 2023
  • Inter Press Service

GENEVA, Mar 22 (IPS) – Given the complex interplay between geopolitics and financial markets, Russia’s invasion of Ukraine in February 2022 sent shockwaves across the global economy. Admittedly, the implications both within and between countries have varied. However, there were some common denominators, including higher commodity prices.

Price disruptions were particularly severe for ‘soft’ agricultural commodities. During peacetime, Russia and Ukraine produced a large amount of the world’s grain, supplying 28 percent of globally traded wheat and 75 percent of sunflower products. Before the war, they were also among the world’s top providers of barley and corn.

After the start of hostilities, exports of grain were severely disrupted. For four months, Russian military vessels blocked Ukrainian ports. Supply constraints triggered market volatility and price rises. Wheat, for instance, reached a record high in March 2022. This left millions of people, particularly in developing countries, at the frontline of a food crisis.

Then, in July 2022, two agreements were signed: one was a memorandum of understanding between the UN and Moscow to facilitate global access for Russia’s food and fertilizer exports; the second was the Black Sea Grain Initiative (BSGI), signed by Russia and Ukraine, facilitating the safe export of grain and other foodstuffs from Ukrainian ports via the Black Sea.

Brokered by the UN and Turkey, the BSGI opened a protected maritime corridor through Ukraine. The agreement assuaged concerns about global grain supplies and led to price declines. Over 900 ships of grain and other foodstuffs have left Ukraine’s major ports since last summer.

Prior to the conflict, between 5-6 million tons of grain were exported from Ukraine’s seaports every month, according to the International Grains Council. By the end-2022, Ukraine had once again reached its historical exporting capacity (at just under 5 million tons). Production responses elsewhere also helped to increase global supplies.

Still, Ukrainian exports to developing countries remain below pre-war levels. And while unblocking the trade corridor did help to address food insecurity in 2022, export backlogs were significant. Today, grain prices (while they have come down in recent months) remain elevated.

Against this backdrop, negotiations between UN officials and Russian Federation representatives – headed by Deputy Foreign Minister Sergei Vershinin – kicked off in Geneva last Monday on a possible extension of the BSGI. Subsequent to a four-month renewal last year, the deal was set to expire on March 18th.

Earlier this month, UN Secretary-General Antonio Guterres highlighted the deal’s importance. He stressed that “it contributed to lowering global food costs and offered critical relief to people…, particularly in low-income countries.” Ukraine’s president, Volodymyr Zelensky, also called for the initiative to be extended.

For their part, Russian officials argued that ‘hidden’ sanctions – targeting fertilizer firms and the country’s main agricultural bank – have undermined commodity exports. By way of background, exemptions were carved out for some Russian food and fertilizer products after Western sanctions first targeted the Kremlin in February 2022.

In Geneva, delegates stressed that over-compliance and market avoidance by private companies had resulted in Russian commodity exports being under-traded. They noted that sanctions on its payments, logistics, and insurance systems created a barrier for Moscow to sell its grains and fertilisers in international markets.

In response, they requested that national jurisdictions enhance exemption clarifications for food and fertilizers products. “I think it’s a fair request,” says Jayati Ghosh, professor of economics at the University of Massachusetts, Amherst. “Hidden sanctions are impeding Russian financial transactions and undermining allegedly exempted exports.”

When the BSGI was last renewed in November, Russia threatened to renege on the deal unless hidden sanctions were addressed. While they eventually agreed to an extension, Moscow has since insisted that its own agricultural exports (notably ammonia) be included in the BSGI as a condition for its renewal.

Under the deal’s latest iteration, Russia’s pre-condition went notably unaddressed. Moscow, in turn, agreed to extend the deal for just two months. Ukraine, meanwhile, issued conflicting statements on the matter. Over the weekend, Deputy Prime Minister Oleksandr Kubrakov tweeted that the agreement had been extended for four months.

So far, the UN has not specified the length of the renewal, but “this could be the last time an extension is agreed,” according to Ghosh. “Russia is probably going to use this latest agreement as a threat. Rejecting a third extension in the spring may force the international community to listen to their concerns”.

IPS UN Bureau Report

Follow @IPSNewsUNBureau
Follow IPS News UN Bureau on Instagram

© Inter Press Service (2023) — All Rights ReservedOriginal source: Inter Press Service

Where next?

Related news

Browse related news topics:

Latest news

Read the latest news stories:

  • Black Sea Grain Initiative: Russia Reluctantly Agrees to a Two-Month Extension Wednesday, March 22, 2023
  • Kenyan Entrepreneur Using Organic Microbes to Unlock Hidden Nutrients in Dairy Feeds Wednesday, March 22, 2023
  • BRAC International Signs MoU with Rwanda to Empower People in Extreme Poverty Tuesday, March 21, 2023
  • One Year into the Ukraine War, Massive Influx of Russians into Georgia Has Consequences for Locals Tuesday, March 21, 2023
  • The Vampiric Draining and Poisoning of Lifeblood: Water Tuesday, March 21, 2023
  • Climate Financing: World Bank Must Respond Tuesday, March 21, 2023
  • Flagship UN report extolls win-win water partnerships to avert global crisis Tuesday, March 21, 2023
  • Extreme weather: UN global early warning initiative ‘fast-tracked into action’ Tuesday, March 21, 2023
  • UN upholds fight for a fairer world on anti-racism day Tuesday, March 21, 2023
  • Pakistan: 10 million deprived of safe drinking water in flood-affected areas Tuesday, March 21, 2023

In-depth

Learn more about the related issues:

Share this

Bookmark or share this with others using some popular social bookmarking web sites:

Link to this page from your site/blog

<p><a href="https://www.globalissues.org/news/2023/03/22/33387">Black Sea Grain Initiative: Russia Reluctantly Agrees to a Two-Month Extension</a>, <cite>Inter Press Service</cite>, Wednesday, March 22, 2023 (posted by Global Issues)</p>

… to produce this:

Black Sea Grain Initiative: Russia Reluctantly Agrees to a Two-Month Extension, Inter Press Service, Wednesday, March 22, 2023 (posted by Global Issues)





Source link

Tags: AgreesExtensionGlobalIssuesReluctantlyRussiaTwoMonth
Previous Post

4 Eye-Tracking Stocks for Driver Monitoring Systems

Next Post

Bitcoin Price Set For $35,000 After US Fed Rate Hike Decision

Related Posts

Gunboats target cargo vessel in Red Sea; crew abandons ship | Shipping News

Gunboats target cargo vessel in Red Sea; crew abandons ship | Shipping News

by Euro Times
July 6, 2025
0

United Kingdom Maritime Commerce Operations (UKMTO) stories the vessel is taking up water after being focused with gunfire and rocket-propelled...

Fisherman missing feared dead after ‘being attacked by TWO SHARKS’ while dragging in his catch in South Africa

Fisherman missing feared dead after ‘being attacked by TWO SHARKS’ while dragging in his catch in South Africa

by Annabel Bate
July 6, 2025
0

A MISSING fisherman is feared useless after getting attacked by two sharks whereas dragging in an enormous haul of sardines...

Dalai Lama, a global symbol of Tibetan culture and resistance, turns 90

Dalai Lama, a global symbol of Tibetan culture and resistance, turns 90

by ABC News
July 6, 2025
0

DHARAMSHALA, India -- DHARAMSHALA, India (AP) — The Dalai Lama turned 90 on Sunday surrounded by hundreds of followers, who...

US fighter jet intercepts suspicious plane over Trump’s golf club — RT World News

US fighter jet intercepts suspicious plane over Trump’s golf club — RT World News

by RT
July 6, 2025
0

5 separate incursions into restricted airspace occurred over Bedminster on Saturday, NORAD has mentioned An F-16 fighter jet intercepted a civilian...

Will UAE residency be affected if you apply for citizenship in other countries? GDRFA chief clarifies rules | World News

Will UAE residency be affected if you apply for citizenship in other countries? GDRFA chief clarifies rules | World News

by TOI World Desk
July 5, 2025
0

UAE residents with legitimate visas can apply for citizenship in different international locations, however their UAE residency stays unaffected if...

Kenyan president plans to build huge church at his official residence

Kenyan president plans to build huge church at his official residence

by DPA
July 5, 2025
0

Kenyan President William Ruto plans to construct a church on the grounds of his official residence at his personal expense,...

Next Post
Bitcoin Price Set For ,000 After US Fed Rate Hike Decision

Bitcoin Price Set For $35,000 After US Fed Rate Hike Decision

Euro pushes higher as ECB chief Lagarde says inflation is still too high

Euro pushes higher as ECB chief Lagarde says inflation is still too high

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This 9-in-1 off-grid portable power station has a 17-year lifespan – and it’s over 50% off

This 9-in-1 off-grid portable power station has a 17-year lifespan – and it’s over 50% off

July 6, 2025
Gunboats target cargo vessel in Red Sea; crew abandons ship | Shipping News

Gunboats target cargo vessel in Red Sea; crew abandons ship | Shipping News

July 6, 2025
At least 36 new tech unicorns were minted in 2025 so far

At least 36 new tech unicorns were minted in 2025 so far

July 6, 2025
Bitcoin Crash? That’s Exactly What ‘Poor Dad’ Kiyosaki Is Hoping For

Bitcoin Crash? That’s Exactly What ‘Poor Dad’ Kiyosaki Is Hoping For

July 6, 2025
Common Tongue Conditions in People With HIV

Common Tongue Conditions in People With HIV

July 6, 2025
BTC, ETH, XRP, SOL, ADA Surge In Suprise Sunday Pump

BTC, ETH, XRP, SOL, ADA Surge In Suprise Sunday Pump

July 6, 2025
Euro Times

Get the latest news and follow the coverage of Business & Financial News, Stock Market Updates, Analysis, and more from the trusted sources.

CATEGORIES

  • Business
  • Cryptocurrency
  • Finance
  • Health
  • Investing
  • Markets
  • Politics
  • Stock Market
  • Technology
  • Uncategorized
  • World

LATEST UPDATES

This 9-in-1 off-grid portable power station has a 17-year lifespan – and it’s over 50% off

Gunboats target cargo vessel in Red Sea; crew abandons ship | Shipping News

  • Disclaimer
  • Privacy Policy
  • DMCA
  • Cookie Privacy Policy
  • Terms and Conditions
  • Contact us

Copyright © 2022 - Euro Times.
Euro Times is not responsible for the content of external sites.

No Result
View All Result
  • Home
  • Finance
  • Business
  • World
  • Politics
  • Markets
  • Stock Market
  • Cryptocurrency
  • Investing
  • Health
  • Technology

Copyright © 2022 - Euro Times.
Euro Times is not responsible for the content of external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In