Russia: Grain Corridor agreement ended

The TQ, the last ship registered in the Black Sea Grain Corridor, received an announcement from Russia stating that the agreement has ended as it left the port of Samsun for Odessa with its cargo. The Kremlin has declared that it will not return to the agreement until the conditions are met.

Russia announced that the Grain Corridor agreement will not be in effect as of today and stated that they will not return to the agreement unless the conditions they have put forward are met.

As negotiations to extend the agreement reached the final hours, the last ship within the scope of the agreement departed from the port of Odessa on Sunday.

The futures contracts for wheat, corn, and soybeans, which are predominantly transported under the agreement, continued to rise for the third consecutive session on the Chicago Board of Trade.

The agreement has helped safely transport over 32 million tons of Ukrainian grain in the past year, contributing to a decrease in world grain prices.

However, the momentum has decreased in recent months, with only about 250,000 tons being transported in July, as new ships were prevented from joining the agreement. The delays in ship inspections have cost exporters millions and led them to seek alternative trade routes.

Russian President Vladimir Putin stated on Saturday that their demands regarding the agreement have not been met and announced that Russia has terminated the agreement and will not return to it until their demands are fulfilled.

Russian officials had previously announced that their country could withdraw if their demands were not met. Despite receiving 29 applications, the joint center managed by four different participants has not approved the inclusion of new ships in the agreement since the end of June.

This situation indicates the necessity of cooperation to maintain the export flow as the corridor is nearly emptied.

The agreement was initially accepted in July 2022 and has been extended three times since then. The United Nations (UN) stated in a weekend announcement that TQ Samsun was the last remaining ship in the corridor.

The last ship departed from the port of Odessa.

Records show that the ship has left the port of Odessa and is awaiting inspection.

The United Nations (UN) sent a proposal to Putin to salvage the agreement but has not received a response yet towards the end of last week. The agreement was initially accepted in July 2022 and has been extended three times since then.

The United Nations stated in a weekend announcement that TQ Samsun was the last remaining ship. The rankings indicate that the ship departed from the Odessa port on Sunday after loading its cargo and is waiting for inspection.

The termination of the agreement will force Ukraine to increasingly rely on river ports, railways, and road transport through the European Union for the shipment of its 2023 harvest. While a significant amount of goods has already been transported this way, logistics costs increase as grain is transported over longer distances.

The “Grain Corridor,” established to alleviate the risk of a food crisis due to the Russia-Ukraine conflict, has transported nearly 33 million tons of grain to date.

Within the scope of the agreement, 40% of the exported grain from the corridor went to Europe, 30% to Asia, 13% to Turkey, 12% to Africa, and 5% to the Middle East.

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