UKRAINIAN agricultural officials have claimed the critical Black Sea Grain Initiative, which has allowed Ukrainian grain to be exported via the Black Sea during the conflict with Russia, is currently operationally dead in the water.
The Ukrainian Agri Council (UAC) said while an extension to the deal was ostensibly agreed upon in late May, a go-slow by Russian authorities inspecting vessels means exports have slowed to a crawl.
Russia recently agreed to a two-month extension of the deal, which according to UAC data, has allowed over 30.5 million tonnes of grain to be moved since it was implemented last July.
However, reports say that unless key Russian demands, such as allowing the export of Russian ammonia via Ukrainian ports and better access to world markets for Russian grain, are met the most recent extension will be the last.
Should the Ukrainian exports stall it would place stress on food security, particularly through North Africa and the Middle East which rely heavily on Black Sea grain as a staple.
Global grain markets are acutely sensitive to potential issues with the freight corridor.
When there was uncertainty about the deal being extended last November wheat prices across both physical and futures markets soared, only coming back down when the market was satisfied the deal would be continued.
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Reuters has reported that the United Nations is advocating that the next tranche of the deal includes provisos to allow Russian ammonia to pass through Ukraine.
The UAC this week issued a release saying that Russia had only registered one incoming vessel for inspection at the port of Chornomorsk without explanation, while other parties to the Joint Coordination Center responsible for administering the initiative confirmed 10 vessels for three ports were ready for registration.
As part of the freight corridor deal Russia must be allowed to register and inspect the vessels before they leave the Black Sea via Turkish waters.
According to the UAC there are 50 vessels waiting in line for inspection in Turkish territorial waters, loaded with 2.4 million tons of food.
It claims some vessels have been waiting for JCC inspections for more than 3 months.
"Blocking the registration of a new incoming fleet, as well as blocking the largest port Pivdennyi, is a gross violation of the terms of the Grain Initiative," said Andriy Dykun, chairman of the UAC.
"In total from May 22 to 28, 2023, only four vessels were shipped from the ports of Greater Odesa and 15 vessels passed the entry inspection," he said.
"With such indicators, it will be extremely difficult to export the surplus products stored in Ukraine before the new harvest arrives."