Kremlin finds current circumstances still not in favor of extending grain deal

Business & Economy April 25, 2023, 13:58

Dmitry Peskov noted that the market shortfall of Russia and Ukrainian grain will not be the cause of a potential global food crisis

MOSCOW, April 25. /TASS/. Russia continues to monitor implementation of the grain deal, but now the circumstances are not in favor of its extension, Kremlin spokesman Dmitry Peskov told reporters on Tuesday.

"Despite the fact that so much time has passed, it has not yet been completed, it has not acquired a package nature. The conditions that concerned us (Russia - TASS) have not been implemented. Therefore, so far, the circumstances are not in favor of this deal. We continue monitoring it," Peskov said, commenting on the future of the deal.

The Kremlin official noted that the market shortfall of Russia and Ukrainian grain will not be the cause of a potential global food crisis.

"We know that the origin of the world food crisis has different roots and is not the direct consequence of the market shortfall of the Ukrainian grain. Certainly, the market shortfall of the Ukrainian grain and Russian grain crops can be one of factors but not a decisive one. The origin [of the crisis] is different and the Russian side has repeatedly explained that," Peskov said.

Earlier, Russian Foreign Minister Sergey Lavrov said following a meeting with UN Secretary General Antonio Guterres on Monday that he received a letter from the top UN official with ideas for a full implementation of the grain deal.

Similar letters were sent to Ukraine and Turkey. On Monday, Turkish Foreign Minister Mevlut Cavusoglu said that the country considers it necessary to extend the grain deal in May, it can be done if Russia's demands are met.

A package of documents on the supply of food and fertilizers to the international market was signed in Istanbul on July 22, 2022. One of the agreements approved a mechanism for the export of grain from the Black Sea ports controlled by Ukraine. Another part of the agreements concerns lifting restrictions on supplies of Russian fertilizer and agricultural products to global markets. The Russian authorities have repeatedly pointed out that the second part of the grain deal is actually not being implemented.

Initially, the agreements were concluded for 120 days, in November the agreements were extended for the same period. On March 18, Russia announced a 60-day extension of the deal, warning that time would be sufficient for an objective assessment of how its memo with the UN has been implemented.

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