Ukraine wants shipping safe passage deal extended beyond grain

Three grain ships left Ukrainian ports on Friday while the first inbound cargo vessel since Russia’s invasion was due in Ukraine later in the day to load, as Kyiv called for the safe passage deal to be extended to other cargoes such as metals.

The July 22 deal marked a rare diplomatic breakthrough as war rages in eastern Ukraine, with Kyiv trying to rebuild its shattered economy after more than five months of conflict.

“We expect that the security guarantees of our partners from the UN and Turkey will continue to work, and food exports from our ports will become stable and predictable for all market participants,” Ukrainian Infrastructure Minister Oleksandr Kubrakov said on Facebook after the ships set off.

The first grain ship left Odesa on Monday.

“This agreement is about logistics, about the movement of vessels through the Black Sea,” Ukrainian Deputy Economy Minister Taras Kachka told Financial Times. “What’s the difference between grain and iron ore?”

The Kremlin said a solution can only be found if linked to lifting restrictions on Russian metal producers.

The United Nations and Turkey brokered the safe passage deal between Moscow and Kyiv after UN warnings of outbreaks of famine due to grain shipments from Ukraine being halted.

Russian President Vladimir Putin sent troops into Ukraine on Feb. 24, sparking the biggest conflict in Europe since World War Two and fuelling a global energy and food crisis.

On Friday, two grain ships set off from Chornomorsk and one from Odesa, carrying a total of about 58,000 tonnes of corn, the Turkish defence ministry said.

The Turkish bulk carrier Osprey S, flying the flag of Liberia, was expected to arrive in Chornomorsk on Friday to load up with grain, the regional administration of Odesa said.

Russia and Ukraine traditionally produce about one third of global wheat and Russia is Europe’s main energy supplier. But Russia said on Friday it might not reach its expected harvest of 130 million tonnes of grain due to weather factors and a lack of spare parts for foreign-made equipment.

Ukraine’s grain exports were down 48.6per cent year on year at 1.23 million tonnes so far this season, its agriculture ministry said.