Kyiv Demands Assurances for Black Sea Grain Deal Amidst Consideration of Russian Ammonia Transit

Ukraine has expressed its desire for assurances from Moscow and the United Nations (U.N.) that the Black Sea grain export deal will function smoothly if Ukraine allows the transit of Russian ammonia through its territory.

The Ukrainian official made this statement on Tuesday, emphasizing the need for clarity on the implications of resuming ammonia transit in relation to Ukraine's grain export capabilities. The Black Sea Grain Initiative was brokered by the U.N. and Turkey last July, aiming to address the global food crisis exacerbated by Russia's invasion of Ukraine, a key global grain exporter. Although Russia agreed to a two-month extension of the deal this month, it has warned that the initiative will cease unless an agreement is reached to overcome hurdles in Russian grain and fertilizer exports.

One of Moscow's demands is the resumption of ammonia transit from Russia through Ukraine to the Pivdennyi port in Odesa for export. The transit of ammonia, a critical component of nitrogen-based fertilizers, was halted through the pipeline after Russia's invasion.

Yuriy Vaskov, Ukraine's deputy renovation minister, expressed doubt regarding the significance of the ammonia pipeline, questioning whether it resolves any issues. He mentioned that if the pipeline does not offer a solution on its own, then there is no basis for further discussion. Vaskov emphasized the importance of clarity from the U.N. and suggested that if the ammonia pipeline becomes operational again, Ukraine should be allowed to export grain without any hindrance. He further stated that the country's political leaders would ultimately determine whether it aligns with Ukraine's interests.

Despite the extension of the grain deal, it has not yet fully resumed operations, and no ships have been authorized to travel to the Pivdennyi port since April 29, according to the UN. Russia's demands to enhance its grain and fertilizer exports include reconnecting the Russian Agricultural Bank (Rosselkhozbank) to the SWIFT international payment system. Other demands include the resumption of agricultural machinery and parts supplies, lifting restrictions on insurance and reinsurance, and unblocking the assets and accounts of Russian companies involved in food and fertilizer exports.

Ukrainian officials have accused Russia of unreasonably impeding the progress of the Black Sea grain deal since mid-April. However, Russia has denied these allegations. A senior government source informed Reuters that Kyiv would consider allowing the transit of Russian ammonia through its territory for export under the condition that the Black Sea grain deal expands to include more Ukrainian ports and a broader range of commodities.

As Ukraine seeks guarantees and clarity regarding the resumption of ammonia transit, the negotiations between Ukraine, Russia, and the U.N. remain ongoing. The resolution of this issue is crucial for both countries' agricultural sectors and has broader implications for the global food crisis. The international community will be closely monitoring the developments, hoping for a mutually beneficial agreement that supports the stability of the region and addresses the urgent challenges faced in the agricultural sector.