The United Nations (UN) published this Thursday a report on the beneficial effects of the Black Sea Grain Agreement signed with Ukraine and Russia, which is coming to an end despite negotiations to extend it.
A report prepared by the United Nations Conference on Trade and Development (UNCTAD) clarifies that thanks to this agreement, 23 million tons of grains were exported worldwide, 55% of which went to developing countries and the rest to developed countries.
According to UNCTAD, a total of 49% of exports are corn, 28% wheat, 11% sunflower derivatives and 4.3% barley.
The flow has remained relatively stable, with a minimum of 2.8 Mt in November 2022 and a maximum of 4.1 Mt in October of the same year.
The UN agency stressed that 60% of the grains exported by Ukraine since the signing of the agreement in July 2022 in Istanbul have been shipped under this initiative, which was brokered by the UN and Turkey, and expires on March 18.
Despite the relative success, the agreement did not prevent export sales of cereals from Ukraine, which together with Russia is one of the world’s largest producers of this type of food, from being 22% below pre-war levels.
UNCTAD also pointed out that due to the war, more Ukrainian grains were transported by river than by sea.
This river transport raises the price of grains, as it does not allow their transshipment to large ships and delays the travel time for developing countries, the UN agency acknowledged.
However, UNCTAD indicated that the initiative has helped bring down food inflation worldwide: current prices are 18% below those reached in March 2022, at the start of the war, although they are still 45% above the average of the past two decades.
The organization also acknowledged that the fall in food prices has not been seen in all countries since the signing of the agreement due to the effects of the depreciation of many local currencies, which, for example, remain higher than in May 2022 in countries such as Egypt, Argentina or Ghana.
During a visit to Ukraine on Wednesday, UN Secretary-General António Guterres said the extension of the grain export agreement was “critical,” noting that it was vital to the world’s food supply.
On the other hand, Russian Foreign Minister Sergey Lavrov stressed this Thursday that the pact “has two parts,” one of which is related to Ukrainian grains and seeds, and the other is related to the export of Russian seeds and fertilizers, which Moscow complains about which is not fulfilled.
“You can only renew what has already been done, but if the package is half completed, the issue of renewal becomes quite difficult,” he said.
For the head of Russian diplomacy, only the first part of the agreement has been fulfilled.
“We, Russia, have fulfilled all our obligations to our Turkish colleagues in this regard. The second part was not completed at all, ”he accused.
Author: Portuguese
Source: CM Jornal
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