President Vladimir Putin could do an about-face and return to the agreement on Ukrainian grain exports, if his demands are carried out “in their entirety”, he said this Wednesday, July 19, during a televised speech. If this condition was not met, the extension of the agreement “would no longer make sense”, he added.
“We will consider the possibility of returning [to the agreement], but on one condition: that all the principles of Russia’s participation in this agreement are taken into account and carried out without exception and in their entirety”, declared the Russian head of state in full government meeting broadcast on television.
Russia decided this week not to extend the deal to allow Ukrainian grain exports after months of criticism of the text, with Moscow saying its own shipments of agricultural products and fertilizers are hampered by the sanctions.
It also calls for Russian banks and financial institutions to be reconnected to the SWIFT international banking system, of which they were deprived after the start of the offensive in Ukraine in 2022.
The agricultural sector of Russia, one of the world’s largest grain exporters along with Ukraine, also has to deal with the lack of spare parts for machinery and industry, as well as problems with ship insurance.
Finally, Moscow is demanding the resumption of operation of the gigantic pipeline linking the Russian city of Togliatti to the Ukrainian port of Odessa used for the export of ammonia, the key component of fertilizers. This tube, out of service since the conflict, was the victim of an explosion attributed to kyiv by Moscow in June.
“As soon as [these conditions] are met, we will immediately return to this agreement,” Vladimir Putin insisted, accusing the West of having “shamelessly profited” from grain exports from Ukraine.
“Instead of helping countries that really need it, the West has used the grain deal for political blackmail and turned it into a tool for the enrichment of multinational corporations, speculators in the global market,” he charged.
According to him, the grain agreement caused losses amounting to 1.2 billion dollars among Russian farmers and a drop in export profitability.
“Our country is able to replace Ukrainian grain both commercially and for free,” the Kremlin leader continued, predicting a “record harvest” this year.
The suspension of the Ukrainian grain corridor and the intensification of Russian bombardments led to a sudden surge in prices on the European market.
This Wednesday, July 19, the price of milling wheat closed sharply higher, at 253.75 euros per tonne on the September deadline on Euronext, gaining 8.2% during the day, to a level not reached since the beginning of April. Maize climbed 5.4%, just below 250 euros per tonne on the August deadline. The days to come could be decisive.
