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Grain deal contributes to market stability, humanitarian operations — FAO

It is reported that the grain initiative contributed to bringing stability to the markets, helping to reduce prices to cereals from the peaks observed in May 2022

ROME, July 12. /TASS/. It is important to extend the grain deal as it contributes to stability on world markets, which leads to lower grain prices. Jose Rosero, Director of the Statistics Division of the Food and Agriculture Organization (FAO) of the United Nations, said this at a press conference responding to a question from TASS on Wednesday.

"The grain initiative contributed to bringing stability to the markets, and it helped to reduce prices to cereals from the peaks we have observed in May 2022. We hope for its renewal to keep stability on the markets and to help keeping this trend with prices," Rosero said. He added that export of this grain from Ukrainian ports helps in humanitarian operations.

In turn, Allison Oman Lawi, the acting Nutrition Director for the World Food Program (WFP) noted in an interview with TASS that her organization unites volunteers. According to her, the organization receives donations and uses them to buy food. She also said that WFP relies on Ukrainian resources in its operations. She recalled that when deliveries from Ukraine abruptly stopped in 2022, WFP "had problems."

"We are in favor of extending the deal because it makes our task easier," she added in response to the remark that only 3% of grain from Ukrainian ports were sent to the neediest countries."

According to the latest WFP report, out of almost 32.5 million tons of Ukrainian grain, WFP exported 655,000 tons to needy countries such as Afghanistan, Yemen, Kenya, Somalia, Sudan, Ethiopia.

On July 22, 2022, a package of documents on the supply of food and fertilizers to the international market was signed in Istanbul. Initially, the agreements were concluded for 120 days, but in November of last year they were extended for another 120-day period. On March 18, 2023, Russia announced it had agreed to a 60-day extension of the deal, while warning that this should provide sufficient time to evaluate the implementation of the memorandum signed with the UN.

The Russian Foreign Ministry stressed that the part of the agreement covering obligations to Moscow is not being fulfilled.

In particular, Russia has insisted on restoring the access of its ships to foreign ports, normalizing the situation with the insurance of dry cargo ships, and reconnecting the Russian Agricultural Bank to the SWIFT interbank payment system.

On June 30, Russian Foreign Minister Sergey Lavrov said that at the moment he sees no arguments in favor of extending the agreements.