Ukraine accuses Russia of blocking grain corridor as wheat prices rebound

25 Oct 2022 --- The Ukraine ministry of foreign affairs is condemning Russia, blaming the country for delaying ship inspections and putting the food trade corridor in an impasse.

Ukraine states that more than 165 vessels are stuck in a queue near the geographic chokepoint of the Bosphorus Strait in Turkey, where inspections are being carried, and the number of waiting ships is increasing by the day.

“Russia’s actions undermine global food security, in particular in the Global South. The inspection delays have already prevented Ukraine from exporting an additional 3 million tons of grain. Ten million people across the world have not received food in time because of Russia’s political agenda,” says the ministry.

Wheat prices propped up this September by 1.5% after months of decreasing prices due to “the heightened uncertainty about the Black Sea Grain Initiative’s continuation,” according to the UN Food and Agriculture Organization.

The grain initiative expires November 19 and its renewal is not a given.

The grain initiative expires November 19 and its renewal is not a given.Hunger games
The Ukrainian authorities are calling on the international community – in particular states in Africa and Asia, which rely heavily on the corridor – to compel Russia to end the unnecessary delays.

“We must not allow the Kremlin to keep millions of people hostage to its hunger games,” highlights the Ukrainian ministry of foreign affairs.

African countries rely heavily on Ukraine and Russia’s wheat, of the 26 countries that source more than 50% of wheat from the two countries almost all of them are from Africa. The figure is between 80% and 100% for Eritrea, Somalia and the Democratic Republic of Congo. 

However, Africa has remained more supportive of the Russian government than Western countries so far, with African Union chair Macky Sall said in June that Russia must be granted access to international markets.

However, only 13% of the corridor food exports have gone to Africa (62% ending in Europe). Some countries in the continent are in dire situations, with Zimbabwe having 309% food inflation and Sudan posting a 149% inflation rate.

Food corridors
Putin called into question the peaceful use of the food corridors after the attack on the Crimea Millenium Bridge earlier this month – in Russia controlled territory. 

“If it turns out that humanitarian corridors are being used to commit terrorist acts, then, of course, this will call into question the functioning of this corridor,” said the Russian President.

“But first, this needs to be established,” he underscored.

However, the UN says that no unauthorized cargo has been found in the over 740 joint authorities inspections on board vessels by the Black Sea Grain Initiative committee.

Corridor renewal
With the grain corridor expiring this November, international bodies and authorities are calling for a renewal of the deal.

The UN Conference on Trade and Development (UNCTAD) has stated that the deal “must be renewed,” as it has helped move 8 million metric tons of food. 

Without the initiative, UNCTAD believes there would be “little hope” for providing food security, especially in developing and least-developed countries. The UN says that no unauthorized cargo has been found in the over 740 joint authorities inspections on board vessels.

Turkey, a vital mediator between the two warring nations, has said the deal will likely be extended.

“There are no obstacles to extending the agreement. I was again convinced of this at meetings with Zelensky and at a meeting with Putin,” said Turkey’s president Tayyip Erdogan last week.

However, in yesterday’s statement, Ukraine foreign ministry leaves doubts about the country’s commitment to renew the deal.

“Recently, the Russian leadership tried to question the grain corridor without any legitimate grounds, demanding new benefits for Moscow’s consent to renew the deal.”

One of these new benefits is Russia’s demand to restart the ammonia trade, a key ingredient for fertilizers.

“We remain committed to continue working closely with the United Nations and Türkiye in order to ensure the unimpeded functioning of the Black Sea grain corridor,” conclude the Ukraine authorities.

By Marc Cervera