Saturday’s extension of a grain deal in the Black Sea is for at least another 60 days, though Russia has said that any extension beyond mid-May would be contingent on the lifting of certain Western sanctions.
In July, the UN and Turkey mediated between Russia and Ukraine, and in November, it was extended for another 120 days. The Russian invasion of Ukraine and subsequent blockade of the Black Sea on February 24, 2022, exacerbated a worldwide food shortage that needed to be addressed.
On Saturday, the United Nations and Turkey announced that the agreement had been extended, though they did not say for how long. Ukraine announced that it had been extended for an additional 120 days. However, continuing the pact with Moscow’s help is essential, and Russia’s participation in the talks was renewed for only 60 days.
Both Russia and the Ukraine play important roles in the global food supply chain. In addition to food, Russia is a leading exporter of fertilizer.
Author’s Comment:
The short duration of the agreement prevents long-term trade hence reduces the competitiveness of Ukraine in grain sector. Example: A country that needs grain in June cannot rely on Ukraine under these conditions. And since it has to place the order a certain amount of time in advance, it will have to choose another provider.
