The work of the grain corridor is again blocked by the Russians

The attention of grain market participants is focused on the statements of the Russian authorities about the completion of the grain corridor on July 18. It is already clear that the Russian Federation will block Ukrainian exports in order to increase sales of its own grain and to increase economic pressure on Ukraine.

According to the Ukrainian Agricultural Business Club (UKAB), during June 12-18, the export of agricultural products through the grain corridor from the ports of Odesa decreased by a third compared to the previous week to 438.1 thousand tons, and the number of loaded ships decreased from 13 to 9 units. These vessels are currently awaiting inspection to continue moving. The situation will be even worse next week, as only 5 vessels were inspected at the port entrance last week.

The main export items for the 46th week of operation of the grain corridor were:

• corn - 80% of all shipments,
• wheat - 7%,
• sunflower cake - 7%.

The main buyers were the countries of Asia (China, Turkey) and Europe (Spain, Italy, France).

In general, during the period of operation of the grain corridor from August 1, 2022 to June 18, 2023, Ukraine managed to export 32 million tons of agricultural products through it.

It will be recalled that Putin's press secretary Peskov said that the Russian Federation sees no reason to extend the grain agreement, and the Deputy Head of the Ministry of Foreign Affairs of the Russian Federation said that July 18 will be the last day of operation of the grain corridor. The authorities of the Russian Federation insist on connecting Rosselhobank to SWIFT, resuming the supply of agricultural machinery and spare parts, canceling restrictions on insurance and access to ports, resuming the operation of the Tolyatti-Odesa ammonia pipeline, unblocking the accounts of sanctioned companies related to the production and transportation of agricultural products. At the same time, the Russian Federation declares that it continues contacts with the UN and Turkey, but will insist on the completion of agreements that are not being implemented.

The coordinator of the White House National Security Council, John Kirby, said that the United States supports the steps of the UN and Turkey to extend the grain agreement because it benefits the whole world, especially the so-called Global South, which is suffering from food shortages due to the Russian war in Ukraine.

The Ukrainian Grain Association (UZA) reported that China, which was and remains the largest importer of grain from Ukraine, is also interested in continuing the grain initiative, and can receive it only through Black Sea ports in batches of 50,000-70,000 tons.

Based on official statements, the parties will continue negotiations with the Russian Federation on the extension of the grain agreement, although the civilized world should already pressure the Russian Federation and ensure free navigation in international waters by using warships, as it did in the fight against Somali pirates.