Security Council debates Russia’s suspension of crucial Black Sea Grains Initiative

The landmark deal to export Ukrainian grain and Russian fertilizer, brokered by the UN and Türkiye with Russia and Ukraine, must be kept alive as it is of vital importance amid the global food crisis, two senior UN officials said on Monday in a meeting of Security Council.

Russia requested the meeting after its decision to suspend its participation in the Black Sea Grain Initiative this weekend, in response to alleged Ukrainian attacks on its ships and infrastructure in that sea.

The UN Under-Secretary-General for Humanitarian Affairs, Martin Griffiths, and the Director of the UN Agency for Trade and Development (UNCTAD), Rebecca Grynspan, briefed the Security Council ambassadors on recent developments.

food aid

“Ukraine’s grain exports are not a food aid operation. They work as a huge price lever, with positive effects around the world. The new security allegations are of great concern to the General secretary and many Member States they are worried now because the deal is in jeopardyGriffiths said.

Ukraine and Russia account for about 30% of world exports of wheat and barley, a fifth of corn, and more than half of sunflower oil.

Russia is also the world’s largest exporter of fertilizers, accounting for 15% of world exports.

The Black Sea Grains Initiative was signed by the UN, Ukraine, Russia and Türkiye during a ceremony in Istanbul in July. Under the agreement, ships carrying grain from three Ukrainian ports travel through an agreed corridor to markets around the world.

The UN and Russia also signed a side agreement on grain and fertilizer exports.

The UN is ready to investigate

Griffiths said it would be “a serious abuse” of the Black Sea Grains Initiative if it were used in any way for military operational advantage.

“The United Nations has the solemn privilege of assisting the Parties to implement this unique agreement (…) The UN is willing to investigate, together with the Member States that are part of the Initiative, any and all evidence presented, if requested.“, he added.

In addition, the mechanism that implements the Initiative, the Joint Coordination Center, made up of representatives of the four signatories, has established agreed processes for incidents and any accidents.

Consensus process underway

“That’s why Russia’s suspension is worrying. There is a painstaking process at the Center to reach consensus on issues big and small, even when in the midst of war. The Coordination Center has to be, and is, meticulously impartial.” “, he claimed.

Regarding the Russian accusations, Griffiths stated that “no ships, aircraft or military assets are, or have been, involved in support of the Initiative by any party“.

And he added that the corridor through which the ships transit does not provide cover or protection for offensive or defensive military actions.

Griffiths also addressed the alleged misuse of cargo ships for military purposes to state that “no vessels were in the corridor the night the reported attacks occurred, and none reported an incident over the weekend.”

food on the go

Meanwhile, emergency measures have been taken to release some of the cargo from Ukrainian ports and inspect some of the 100 or so ships that are queued up and ready to sail.

The aid chief insisted that Ukrainian and Russian exports are vital in a world where millions of people are hungry and have difficulty paying their bills.

“Let me also say very clearly that we expect all member states to work to support the implementation of the Memorandum of Understanding with the Russian Federation, also signed on July 22, to ensure that their own food and fertilizer exports can quickly reach markets. global,” he told the Council.

Impact of agreements

Rebecca Grynspan, for her part, expanded on this message in her speech, saying that since the two agreements were signed, grain exports from Ukraine and Russia have increased substantially, and food prices fell for six consecutive months.

However, uncertainty surrounding the Initiative’s continuation is causing a further rally in prices, with wheat futures markets rising more than 6% on Monday alone. He also warned of “fertilizer shortages”, with high prices affecting farmers, which also could affect the availability of other basic products such as rice.

Grynspan said the UN has been focused on finding solutions so that key markets can access Russian fertilizers.

Penalties are a factor.

What we’ve called the “chilling effect” of sanctions on the private sector — over-compliance, reputational risks, market evasion — remains a real hurdle,” Grynspan said, speaking by videoconference.

In addition, “the transaction costs of insurance premiums, financial payments, shipping and transportation costs, for Russian food and fertilizer exports, are very high, which makes world prices for food and fertilizers remain high.

very intense negotiations

As for other UN efforts, he reported that there have been “very intense negotiations” with the United States, the European Union, the United Kingdom and other countries, as well as with the private sector to obtain exceptions to the sanctions imposed on Russia for the invasion of Ukraine.

“But, even with clear exemptions on sanctions, there is still a lot of work to be done,” he added.

Specifically, the senior official cited “the need to continue clarifying the exemptions for food and fertilizers within the different sanctions regimes, the need to address indirect restrictions on trade in food and fertilizers, as well as improving the readiness of the sector private to participate.