Due to sabotage by the Russian Federation, Ukraine must withdraw from the grain agreement and export grain under government guarantees, as well as strengthen sanctions on exports from the Russian Federation

2023-06-06 12:47:39
Due to sabotage by the Russian Federation, Ukraine must withdraw from the grain agreement and export grain under government guarantees, as well as strengthen sanctions on exports from the Russian Federation

In June, representatives of the SCC in Istanbul did not conduct any inspection of vessels within the scope of the grain initiative, which indicates the deliberate blocking of grain exports from Ukraine by representatives of the Russian Federation.

 

Many experts claim that the grain agreement is more useful for the Russian Federation, as it allows it to export about 5 million tons of grain every month without any restrictions, and also to demand the restoration of transit and export of Russian ammonia by blocking the ports of Ukraine.

 

Ukrainian farmers lose $30-40 per ton of grain due to vessel traffic delays and expensive freight, so in the event of a drop in world prices in the new season, they will suffer even greater losses. In such conditions, Ukrainian farmers and exporters should stop the export of grain and demand the cancellation of the grain agreement, which is unfavorable for Ukraine, with the subsequent transition to plan B - direct export under state guarantees .

 

The Minister of Agricultural Policy of Ukraine, M. Solsky, believes that "the grain corridor works only legally, and the actual events of the last week testify to the lack of effective work."

 

"If the situation does not change, then Ukraine will go to plan B, which will require the support of the UN and exclude the Russian Federation from the participants of the agreement. The Ukrainian authorities will offer insurance guarantees to carrier companies, for which an insurance fund in the amount of about $547 million has already been created. In case of blocking of the ports, the carriers will be able to start their ships through the grain corridor, having state guarantees from Ukraine, and confidence in reliable protection from the Ukrainian military and air defense," said M. Solskyi.

 

The Government of Ukraine has approved the Procedure for providing guarantees for compensation for damage caused to charterers, operators and/or owners of sea vessels and inland navigation vessels as a result of armed aggression by the Russian Federation, which applies to ships flying Ukrainian or foreign flags (with the exception of the Russian Federation and Belarus).

 

The Deputy Prime Minister for the Reconstruction of Ukraine, Oleksandr Kubrakov, said that the introduction of compensation will allow charterers and shipowners to enter Ukrainian ports regardless of whether the grain agreement works, as they are now wary of covering such risks, which poses a threat to non-military sea transportation from Ukrainian ports.

 

The following damages will be subject to compensation:

  • damage caused to the ship due to death or destruction that is not subject to recovery,
  • costs for the elimination of structural damage to the vessel, due to which the vessel lost its seaworthiness,
  • damages due to loss and/or damage to cargo,
  • expenses related to damage to the health or life of a passenger or a member of the ship's crew.

 

Compensation will be provided only to those shipowners who have concluded an insurance contract or P&I (Protection and Indemnity) policy in accordance with the procedure established by the legislation of Ukraine or another state, but received a written refusal from the insurer to compensate for losses caused by the armed aggression of the Russian Federation. For this, within 90 days after receiving such a refusal, the shipowner must submit the appropriate package of documents to the Ministry of Infrastructure.

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