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Putin Seeks Solution To Ukraine Grain Deal

  • Writer: By The Financial District
    By The Financial District
  • Sep 5, 2023
  • 2 min read

Russian President Vladimir Putin said on Monday that a grain deal allowing Ukraine to safely export grain through the Black Sea won't be restored until the West fulfills its obligations to facilitate Russian agricultural exports.


Since Putin withdrew from the grain initiative, Erdogan has repeatedly pledged to renew arrangements that helped avert a food crisis in parts of Africa, the Middle East, and Asia. I Photo: www.kremlin.ru



Putin made this statement after talks with Turkish President Recep Tayyip Erdogan, who, along with the UN, brokered the deal, which is seen as vital for global food supplieOdesas, especially in Africa, the Middle East, and Asia, according to a joint report by Euronews and AP.


Ukraine and Russia are major suppliers of wheat, barley, sunflower oil, and other goods that developing nations rely on.



However, Russia refused to extend the deal in July, citing an agreement that promised to remove obstacles to Russian food and fertilizer exports but had not been honored. It claimed that restrictions on shipping and insurance were hampering its agricultural trade, despite having shipped record amounts of wheat since last year.


Putin stated that if these commitments were honored, Russia could return to the deal "in the nearest days."


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He also mentioned that Russia is close to finalizing an agreement to provide free grain to six African countries. The Russian leader added that Russia would ship 1.1 million tons of cheap grain to Turkey for processing and delivery to impoverished countries.


Since Putin withdrew from the grain initiative, Erdogan has repeatedly pledged to renew arrangements that helped avert a food crisis in parts of Africa, the Middle East, and Asia.


Government & politics: Politicians, government officials and delegates standing in front of their country flags in a political event in the financial district.

A lot is riding on the talks for the world food supply, and analysts had predicted beforehand that Putin would drive a hard bargain.


"My gut feeling is that Putin recognizes the leverage he has by using food as an economic weapon, and thus will fight for all he can get in terms of concessions on his wishlist," said Tim Benton, a food security expert at the Chatham House think tank.


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These concessions may include Russia's grain and fertilizer exports, or broader issues, he added.


Data from the Joint Coordination Center in Istanbul, which organized the Ukraine shipments, shows that 57% of the grain from Ukraine went to developing nations, with the top destination being Beijing, China, which received nearly a quarter of the food.


Market & economy: Market economist in suit and tie reading reports and analysing charts in the office located in the financial district.

In addition to pulling out of the grain deal, Russia has repeatedly attacked the Odesa region, where Ukraine's main Black Sea port is located. On Monday, the Ukrainian Air Force reported that it intercepted 23 of the 32 drones that targeted the Odesa and Dnipropetrovsk regions but did not specify the damage caused by the drones that got through.


The Turkish president has maintained close ties with Putin during the 18-month war in Ukraine. Turkey hasn't joined Western sanctions against Russia following its invasion, emerging as a primary trading partner and logistical hub for Russia's overseas trade.




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