Extension questionable – Russia threatens to end grain deal

“No agreement can stand on one leg, it must stand on two legs,” Peskow said. On that note, the prospects for renewal are “obviously not that great given the current state of affairs”.

Agreement expires May 18
Despite the war, the agreement is intended to allow the export of grain and fertilizer from Ukraine across the Black Sea. It was first agreed by Russia and Ukraine last July, brokered by Turkey and the UN, and has since been extended twice. However, according to the Moscow government, Russian exports of food and fertilizer are hampered by obstacles such as insurance and payment processing. So last month Russia said it would only extend the agreement for 60 days, despite the UN, Ukraine and Turkey wanting another 120-day extension. According to the current status, it will expire on May 18.

Russia is demanding that if the deal is extended further, the West must meet several conditions, including reconnecting Russia’s Agricultural Bank to the international Swift payment system. Other demands include resuming the supply of agricultural equipment and parts, lifting restrictions on insurance and reinsurance, access to ports, resuming the Togliatti-Odessa ammonia pipeline and releasing assets and accounts of Russian companies involved in grain and fertilizer exports.