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  3. /3 more ships loaded with grain leave the ports of Ukraine under a UN agreement

3 more ships loaded with grain leave the ports of Ukraine under a UN agreement

Economy / August 6, 2022 / DRPhillF / 0

Istanbul (AFP) – Three more ships carrying thousands of tons of corn left Ukrainian ports on Friday and traveled through mined waters to check their overdue cargo, a sign that an international grain export deal has stalled since Russia invaded Ukraine. It was progressing slowly. But there are significant obstacles to getting food to the countries that need it most.

Ships to Ireland, UK and Turkey track first shipment of grain Passing through the Black Sea since the beginning of the war. The passage of that ship bound for Lebanon earlier this week was the first in the framework of the deal mediated by Turkey and the United Nations with Russia and Ukraine.

The ships were the first to leave among more than a dozen bulk carriers and cargo ships that were loaded months ago but stuck in ports since the Russian invasion in late February. While the resumption of shipments has raised hopes of easing the global food crisis, much of the spare goods are for animal feed, not for people to eat, experts say.

The Black Sea region is called the breadbasket of the worldwith Ukraine and Russia the main global suppliers of wheat, corn, barley and sunflower oil That millions of poor people in AfricaThe Middle East and parts of Asia depend on survival.

However, the initial shipments are not expected to have a significant impact on global prices of corn, wheat and soybeans. For starters, exports under the deal got off to a slow and cautious start Because of the danger of explosive mines floating off the coast of Ukraine on the Black Sea.

While Ukraine is a major exporter of wheat to developing countries, other countries, such as the United States and Canada, have much greater production levels that can affect global wheat prices.. They are at risk of dehydration.

“Ukraine accounts for about 10% of international trade in wheat, but it’s not even 5% in terms of production,” said David Laborde, an expert on agriculture and trade at the International Food Policy Research Institute in Washington.

The three ships that departed on Friday were escorted by Ukrainian pilot ships to safe passage due to explosive mines scattered in the Black Sea. Ships set off with more than 58,000 tons of corn, but that’s still a fraction of the 20 million tons of grain Ukraine says is trapped. In silos and ports in the country which must be shipped to make room for this year’s harvest.

About 6 million tons of the trapped grain is wheat, but only half is for human consumption, Laborde said.

There is a projection that Ukraine could produce 30% to 40% less grain over the next 12 months due to the war, although other estimates put this figure at 70%.

Grain prices peaked after the Russian invasion, and while some have since fallen to pre-war levels, they are still higher than they were before the COVID-19 pandemic. Corn prices are 70% higher than they were at the end of February 2020, said Jonathan Haines, chief analyst at data and analytics firm Gro Intelligence. He said wheat prices are about 60% higher than they were in February 2020.

One of the reasons for the continued rise in prices is the impact of drought on crops in North America, China and other regions, as well as the high price of fertilizer necessary for cultivation.

When fertilizer prices rise, farmers may use less fertilizer. And when they use less fertilizer, they will produce less. If they were to produce less, Laborde said, the supply would still be insufficient.

The three ships that left Ukraine on Friday give hope for increased exports to developing countries, with many facing a heightened risk of food shortages and hunger..

“The overnight movement of three additional vessels is a very positive sign and will continue to build confidence that we are moving in the right direction,” Haines said. “If the flow of grain from Ukraine continues to expand, it will help ease global supply constraints.”

The Turkish-flagged ship Polarent, carrying 12,000 tons of corn, has left the port of Chornomorsk for Karasu, Turkey. The Panamanian-flagged Navy Star left the port of Odessa for Ireland with 33,000 tons of corn. The United Nations said the Maltese-flagged ship Rogen left Chornomorsk for the United Kingdom, carrying more than 13,000 tons of maize.

She added that the Joint Coordination Center – run by officials from Ukraine, Russia, Turkey and the United Nations overseeing the agreement signed in Istanbul last month – had authorized the three ships to inspect a ship bound for Ukraine. The Barbados-flagged Fulmar S has been inspected in Istanbul as it heads to the port of Chornomorsk.

The checks seek to ensure that outbound cargo ships carry only grain, fertilizer or foodstuffs and no other goods and that incoming ships are not carrying weapons.

After Turkey helped broker the food deal two weeks ago, Turkish President Recep Tayyip Erdogan met with Russian President Vladimir Putin. In Sochi, Russia, on Friday.

In a statement after the four-hour talks, Putin and Erdogan stressed the “necessity for the full implementation of the comprehensive agreement reached in Istanbul … including the unimpeded export of Russian grain and fertilizer.”

In other developments Friday, Ukraine’s presidential office said at least eight civilians were killed and 16 wounded in the latest Russian bombing.

For weeks, the eastern Donetsk region faced the largest barrage of Russian shells. Donetsk Governor Pavlo Kirilenko repeated his appeal to all residents to evacuate.

“Shelling and explosions are going on around the clock, and people who refuse to evacuate risk being killed on their pillows,” Kirilenko said in televised statements.

In Kharkiv, the second largest city in Ukraine, three districts were subjected to massive bombardment. A number of apartment buildings and a street market were damaged, and three people were injured.

The Russian bombing also targeted the city of Zaporizhia and several towns along the front line in the region. For the second day in a row, the Russians also bombed the city of Nikopol, which faces the Zaporizhzhya nuclear power plant across the Dnieper River. Dozens of homes were damaged.

Energoatom, which operates nuclear power plants in Ukraine, said that in the evening three shells fell on the territory of the Zaporizhzhia plant, the largest in Europe. There were no reports of injuries or damage to the reactors.

“This is an outright and bold crime, an act of terrorism,” Ukrainian President Volodymyr Zelensky said in his nightly video address.

The Russians also struck the southern city of Mykolaiv. The region’s governor, Vitaly Kim, said Russian forces fired into the city after lunchtime, causing extensive damage, killing an unspecified number of people and wounding at least nine. He said the fire came from the direction of Kherson, the Russian-occupied city about 50 kilometers (30 miles) to the southeast.

___

Elbatrawy reported from Dubai.

Related

AP Top News, black sea, business, Europe, government and politics, health, Istanbul, Russia and Ukraine war, The Middle East, turkey, United kingdom, United Nations, world News, world Trade

DRPhillF

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