Russian President Vladimir Putin said Thursday that Russia may quit the Black Sea grain deal if its demands are not met. The deal is due to expire Monday.
“As one of the options, let’s not start with the extension and then the fulfillment of promises, but first the fulfillment of promises and then our participation,” he told journalist Pavel Zarubin.
“What I mean is, we can suspend our participation in this deal and if everyone once again says that all the promises made to us will be fulfilled, well, let them fulfill these promises and we will immediately join this deal again.”
A key Russian demand has been to allow access to international payments mechanisms currently out of bounds to Russian banks as part of an international sanctions regime.
“Not a single point related to the fact that there are interests of the Russian Federation have not been fulfilled. Despite this, we voluntarily extended this deal many times. Well, listen, that’s enough in the end,” Putin said.
Extension proposals: UN Secretary-General Antonio Guterres sent a letter to Putin this week outlining a proposal to keep the deal alive.
UN spokesman Stephane Dujarric told reporters the objective of that proposal is to “remove hurdles affecting financial transactions through the Russian agricultural bank, a major concern expressed by the Russian Federation, and simultaneously allow for the continuing flow of Ukrainian grain through the Black Sea.”
The Russian Foreign Ministry has previously rejected one formula that would create a subsidiary of one Russian bank that might then be allowed to connect with the international financial system.
What to know about the deal: The Black Sea grain deal brokered by Turkey and the United Nations allows Ukrainian wheat and other crops to be shipped to international markets through secure corridors. While global supplies are not as tight as they were last year, traders say prices would rise if the deal is not renewed.
There are alternative routes for Ukrainian grain and oilseed exports by rail through Eastern Europe, but they can’t readily cope with the volume that Ukraine wants to export.
Romania has refurbished rail links and storage facilities but its main port is already clogged with waiting ships.
