Business news from Ukraine

Business news from Ukraine

“Grain Initiative” works at less than 20% of its throughput capacity

10 June , 2023  

“Grain Initiative” is already operating at less than 20% of its normal throughput capacity because of the Russian Federation’s position in the joint coordination center and the situation is getting worse every day, Deputy Infrastructure Minister Yuriy Vaskov told Interfax-Ukraine in a commentary on Thursday.
“We have had only 43 vessels inspected for entry since May 1 until today. Accordingly, on average, since May 1, the Russian Federation has let in a little more than one vessel per day for inspection. Fifty-four vessels are currently awaiting inspection, some of which have been awaiting inspection for more than three months. The port of Pivdenny is not fully operational. If we talk in numbers, the initiative is already working at less than 20% of its normal capacity. And the situation is deteriorating day by day, solely because of Russia’s position in the joint coordinating center,” said Vaskov.
The deputy minister pointed out that the UN and Turkey are informed of the situation and negotiations are being conducted through them. “Negotiations are being conducted through the UN and Turkey. They are aware of the situation. Every day we communicate. At this time, we have no information that the situation can improve,” Vaskov said.
Answering the question about the prospects for Russian ammonia transit in exchange for guarantees of normal functioning of the secure grain export agreement, he recalled that the ammonia pipeline is currently non-operational. “The ammonia pipeline has been damaged twice in the last three days by Russian shelling. At the moment it is inoperable. To say how long it can be repaired, only the relevant specialists will be able to say when they get access and it is safe,” Vaskov said.
“The Black Sea Grain Initiative was adopted in Istanbul on July 22, 2022 with the participation of the UN, Ukraine, Turkey and Russia. Its essence is to create a corridor for the export of grain from the three Ukrainian ports “Chernomorsk”, “Odessa” and “Pivdenniy” in the conditions of Russia’s ongoing war against Ukraine. The initiative was concluded for 120 days and was extended twice, most recently on March 18. However, while Ukraine claimed it had been extended for 120 days, Russia claimed only 60, until May 18, and insisted on unblocking the operation of the Tolyatti-Odessa ammonia pipeline and lifting all sanctions on trade in Russian agricultural products and fertilizers.
On May 17, Turkey’s president said that the Grain Initiative would continue for two more months, which was later confirmed by UN Secretary General Antonio Gutteres. However, the head of the UN said that there were still unresolved issues.
The port of Pivdenniy is operated by the Odessa Port Plant, which is engaged in the transshipment of ammonia from the Tolyatti-Odessa ammonia pipeline.