By Lateef Adegbite with agency reports
With the soaring prices of grain in the global food market, the United Nations, UN, appears to have intervened to set up a sea corridor for Ukrainian grain exports, described by maritime analysts as ‘’reasonable’’. In actualising the plan, Antonio Guterres, the UN , Secretary General, wants Russia and Ukraine, the two countries involved in the conflict, as well as Turkey, a member of the North Atlantic Treaty Organisation, NATO , to agree to the corridor.
There are fears in international circles that there may be hurdles to the deal , including persuading Russia to ease its blockade of Ukraine seaports , and Ukraine to clear the mines it had laid at its seaports to frustrate Russia soldiers and Naval personnel from coming into the seaports, as well as convincing the shipping and Insurance Companies that the sea corridor is safe to use.
The UN Secretary General, according to a Diplomatic source may not have been bothered by such bottlenecks as he was still working round the clock to establish the sea corridor for export of Ukraine grains as time is running out. This is because of the little space left for the country’s next harvest starting at the end of July 2022.
Until the UN , took up the bold initiative to establish a sea route for Ukraine to export its grain to the international Community, the country was said to have already established two routes through neighbouring Poland and Romania to export its grain to Foreign buyers to avert global food crisis.
Rerouting Ukraine grain to Romania , according to a Nigerian importer involves transport by rail to ports on the Danube river and loading the cargoes in barges for sailing towards the port of Constanta, described as a complex and costly process. Described as Romania biggest seaport, and home to Europe’s fastest loading grain terminal. It was said to have processed nearly a million tonnes of grain, particular, wheat and corn, from Ukraine in the last six months
Markian Dytrasevych, Ukrainian Deputy Agricultural minister fears that that when Constanta Operators turn to European grain suppliers in Summer, it would further complicate export of its grain through the port. Dan Dolghin, Director of Cereal operations at the Black Sea port’s main Comvex operator, had said that for the port operator maintaining and increasing they volume of cargo and continue to help Ukraine grain farmers, they need to increase their handling capacities, which may not be possible because of the down turn in the world economy.
A Diplomatic source had confirmed that the Zelensky Volodymr government was also in talks with Estonia, Lativia and Lithunia, the Baltic states to add a third corridor for its grain exports.
Note that Russia and Ukraine alone, account for a third of global wheat supply and their importance has been underscored by the Asian country of Indian export ban as well as the adverse crop weather condition in the North American country of the United States, US and Western Europe.
There is no gain saying the fact that the Russia-Ukraine war, coupled with the Western economic sanctions against Russia and Belorussia may have sent the price of grain, particular, wheat soaring . Apart from being a major wheat exporter in the world, Ukrain is also a major exporter of corn, barley, sunflower oil and rapeseed oil. In 2021, alone, Grain which is Ukraine ‘s major industries, accounted for exports totaling $2.2 billion.
At present, dozens of countries , including Nigeria and other West African countries rely on import of cereals from Ukraine, mostly exported through the Black sea, which are now either in Russian Navy hands or bloaded by their warships. It is instructive to note that prior to the war, Ukraine exported 98% of its cereals, oilseed through the Black sea, at the rate of up to six million tonnes per month while Russia and Belarus, account for 40% of global exports of the crop nutrient of potash.
,.The Russian Federation may have cue from the UN plans to enhance export of Ukraine grain into the world Agricultural products market in the face of the war by withdrawing its Naval personnel from Ukraine’s Snake Island in the north western Black sea which it had occupied since February 24, 2022. The country’s Defence ministry had said that the decision was taken ‘’to ensure a free the passage of Ukraine ‘s grain export, threatening global food crisis and free movement of ships without any hindrance’’.
The Russian Federation ministry of Defense was emphatic when it said that ‘’it does not want to hinder the UN , plans ‘’to organize a Humanitarian corridor for export of Agricultural products from the territory of Ukraine’’.
Teras Kachta, Ukraine’s Deputy for the Economy and lead trade negotiator , had said that Russia’s efforts to dominate the Black sea and conquer the country’s south may prevent the UN deal, stressing that the rumours of a breakthrough are ‘’ optimistic than reality’’. The Ukrainian minister had told those that cares to listen that the country will not agree ‘’to any attempts to use food security solution goodwill or grace of Russia to establish the sea corridor, stating that it will not work or be trusted’’.
Recall that the G7 Leaders several times have implored Vladimir Putin, the Russian President, to lift the Back sea blockade ahead of Ukraine’s imminent Summer Harvest, with fears that the country’s grain storage capacity may soon be exhausted unless space is needed to accommodate new Harvests.
But Russian Federation officials a had insisted on ‘’inspecting the ocean going vessels entering and exiting the Ukrainian ports, to ensure that arms and amunitions are not illegally taken into the country in order to end the siege. But Zelensky Volodymir HAS likened the idea to piracy and would not agree to it.
Kachta, who may have spoken the mind of President Zelensky, when he asserted that instead of Russian officials inspecting ships entering or exiting the country’s ports to lift grains to the international grain market, it would be better for a third party’s Naval presence to escort vessels, including Her Majesty’s fleet or the US or Turkey’’.
Zelensky, the Ukrainian President may have made matters worse when he said that he will only’’ allow grain ships to leave the country’s port if the European Union, EU, lifts the sanctions imposed against Russia after the country invaded Ukraine last February.
For now, Ukraine appear to be sailing barges loaded with grain through a section of the Danube and on to Romania’s Black seaport of Constanta to beat Russian Army to it. Many believe that the shipment volumes are nothing compared to the volume exported to the internal Community prior to the war.
The Russian Army may have advantage of the war to smuggle grain picked up at Sevastol in Cremea, the region annexed by Russiai n 2014. Only recently a ship called the Fedor steamed south of the Bsphorous, as reported by Financial Times, before stopping at Bandirma, a Turkish seaport.
The Russian bulk carrier was said to have been loaded with 9,000 tonnes of corn. The cargo was said to have come from a small port from Russia, a major source of grains to the world.
