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Russia says it resumes participation in Ukraine grain deal

By Ali Kucukgocmen and Jonathan Landay ANKARA/MYKOLAIV, Ukraine (Reuters) -Russia said on Wednesday it would resume its participation in a deal to free up vital grain exports from...
Russia says it resumes participation in Ukraine grain deal © Reuters. Ukraine's President Volodymyr Zelenskiy speaks during a joint news conference with Czech Prime Minister Petr Fiala (not seen), as Russia's attack on Ukraine continues, in Kyiv, Ukraine October 31, 2022. REUTERS/Viacheslav Ratynskyi

By Ali Kucukgocmen and Jonathan Landay

ANKARA/MYKOLAIV, Ukraine (Reuters) -Russia said on Wednesday it would resume its participation in a deal to free up vital grain exports from war-torn Ukraine after suspending it over the weekend in a move that had threatened to exacerbate hunger across the world.

The Russian defence ministry said it had received written guarantees from Kyiv not to use the Black Sea grain corridor for military operations against Russia.

"The Russian Federation considers that the guarantees received at the moment appear sufficient, and resumes the implementation of the agreement," the ministry statement said.

Turkish President Tayyip Erdogan said earlier that Russian Defence Minister Sergei Shoigu had told his Turkish counterpart that the July 22 grain deal brokered by Turkey and the United Nations would continue to operate as of midday on Wednesday.

"The grain transports will continue as agreed before as of 12 (pm) today," Erdogan said.

Russia suspended its involvement in the deal over the weekend, saying it could not guarantee safety for civilian ships crossing the Black Sea because of an attack on its fleet there. Ukraine said that was a false pretext.

Ships have continued to carry Ukrainian grain on the route despite the suspension, but that had been unlikely to continue for long because insurance companies were not issuing new contracts due to Russia's move, industry sources told Reuters.

Ukrainian President Volodymyr Zelenskiy said earlier that the world should respond firmly to any Russian attempts to disrupt Ukraine's export corridor across the Black Sea, which was blocked after Moscow invaded Ukraine on February 24.

The Russian blockade has exacerbated food shortages and a cost of living crisis in many countries as Ukraine is one of the world's biggest suppliers of grain and oilseeds.

In a Tuesday night video address, Zelenskiy said ships were still moving out of Ukrainian ports with cargoes thanks to the work of Turkey and the United Nations.

"But a reliable and long-term defence is needed for the grain corridor," Zelenskiy said.

"Russia must clearly be made aware that it will receive a tough response from the world to any steps to disrupt our food exports," Zelenskiy said. "At issue here clearly are the lives of tens of millions of people."

The grains deal aimed to help avert famine in poorer countries by injecting more wheat, sunflower oil and fertilizer into world markets and to ease a steep rise in prices. It targeted the pre-war level of 5 million metric tonnes exported from Ukraine each month.

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01-05-2024 10:45:17 (UTC+7)

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 EUR/USD1.0658↑ Sell
 GBP/USD1.2475↑ Sell
 USD/JPY157.91↑ Buy
 AUD/USD0.6469Neutral
 USD/CAD1.3780↑ Buy
 EUR/JPY168.32↑ Buy
 EUR/CHF0.9808Neutral
 Gold2,295.80↑ Sell
 Silver26.677↑ Sell
 Copper4.5305↑ Buy
 Crude Oil WTI81.14↑ Sell
 Brent Oil85.62↑ Sell
 Natural Gas1.946↑ Sell
 US Coffee C213.73↑ Sell
 Euro Stoxx 504,920.55↑ Sell
 S&P 5005,035.69↑ Sell
 DAX17,921.95↑ Sell
 FTSE 1008,144.13Sell
 Hang Seng17,763.03↑ Sell
 Small Cap 20001,973.05↑ Sell
 IBEX 3510,854.40Neutral
 BASF49.155↑ Sell
 Bayer27.35↑ Sell
 Allianz266.60↑ Sell
 Adidas226.40↑ Sell
 Lufthansa6.714Neutral
 Siemens AG175.90↑ Sell
 Deutsche Bank AG15.010Neutral
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