Russia agrees to continue BSGI

RUSSIA / FSU POLITICS - In Brief 14 Mar 2023 by Alex Teddy
On March 13 Russia agreed with the United Nations to allow the Black Sea Grain Initiative (BSGI) to be extended. However, this is only for 60 days. It had been anticipated that the BSGI would be extended for rather long. BSGI is vital for food security in the Global South. Bangladesh, Egypt, Lebanon, China, Italy, Spain and Turkey are heavily reliant on Ukrainian corn, wheat and sunflower oil.  The BSGI was due to expire on March 18. It had been hoped that it would be prolonged by a further 120 days as it was in November 2022. In March 2022 Russia initially seemed negative about extending it. Many are relieved that Russia has not thwarted it. Russian representatives meet the UN Humanitarian supremo in Switzerland on March 18 to sign the agreement.  Russia said that it wanted there to be headway on an agreement loosening sanctions on Russia in order for the BSGI to be extended for a more significant period. Russia wants progress on bank payments, Russia food exports, Russian fertilizer exports, ammonia exports via a pipeline to Odessa and the unfreezing of Russian assets. More than 24 million tonnes were exported under the BSGI in 2022 and early 2023. Ukraine did not agree to the BSGI with Russia as such. Ukraine and Russia both signed agreements with the UN. Ukraine needs the exports for its economy. The Ukrainian economy shrank by 30% in 2022.

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