Russia dashes global hopes, refuses to restore grain deal

Russian President Vladimir Putin said on Monday that a landmark deal allowing Ukraine to export grain safely through the Black Sea amid the war won’t be restored until the West meets Moscow's demands on its own agricultural exports.

Ukraine and its Western allies have dismissed the Kremlin’s demands as a ploy to advance its own interests.

Still, Putin's remarks dashed hopes that his talks with Turkish President Recep Tayyip Erdogan could revive an agreement seen as vital for global food supplies, especially in Africa, the Middle East and Asia.

Russia refused to extend the deal in July, complaining that a parallel agreement promising to remove obstacles to Russian exports of food and fertilizer hadn’t been honoured. It said restrictions on shipping and insurance hampered its agricultural trade, though it has shipped record amounts of wheat since last year.

Putin reiterated those complaints on Monday, while also telling reporters that if those commitments were honoured, Russia could return to the deal "within days.”

Erdogan also expressed hope that a breakthrough could come soon.

He said Turkey and the UN - which both brokered the original deal - have put together a new package of proposals to unblock the issue.

"I believe that we will reach a solution that will meet the expectations in a short time,” Erdogan said at the news conference held with Putin in the Russian resort of Sochi.

Earlier, German Foreign Minister Annalena Baerbock lashed out, saying Putin's "game with the grain agreement is cynical.”

"It’s only because of Putin that the freighters don’t have free passage again,” she told reporters in Berlin.

A lot is riding on the negotiation. Ukraine and Russia are major suppliers of wheat, barley, sunflower oil and other goods that developing nations rely on.

Data from the Joint Coordination Center in Istanbul, which organized shipments under the deal, show that 57% of the grain from Ukraine went to developing nations, with the top destination being China.

Grain prices shot up after Russia pulled out of the deal but have since fallen back, indicating that there isn't a big crunch in the market for the moment.

Ukraine and its allies have often noted that Russia's move left many developing nations in the lurch, since so many were recipients of the grain.

Perhaps in an effort to address that accusation, Putin said on Monday that Russia was close to finalising an agreement to provide free grain to six African countries. Last month, he promised shipments to Burkina Faso, Zimbabwe, Mali, Somalia, Eritrea and Central African Republic.

The Russian leader added that the country will ship 1 million metric tonnes of cheap grain to Turkey for processing and delivery to poor countries.

In addition to pulling out of the grain deal, Russia has repeatedly attacked the Odesa region, where Ukraine’s main Black Sea port is.

Hours before the Sochi meeting, the Kremlin’s forces launched a second barrage in two days on the area.

The Ukrainian air force said it intercepted 23 of 32 drones that targeted the Odesa and Dnipropetrovsk regions. It did not specify damage caused by those that got through.

Russia may be hoping it can use its power over Ukraine’s Black Sea exports as a bargaining chip to reduce Western economic sanctions.

Ukraine’s Foreign Minister Dmytro Kuleba on Monday urged Moscow to return to the deal, insisting "there were no legal and political grounds for Russia to withdraw from the agreement.”

Monday's talks took place against a backdrop of Ukraine's recent counteroffensive against the Kremlin's invasion forces.

In the latest development, Ukrainian President Volodymyr Zelenskyy said on Sunday that Defence Minister Oleksii Reznikov would be replaced this week.

The job requires "new approaches,” Zelenskyy said, without elaborating. Reznikov on Monday published a photo of his resignation letter.

Putin and Erdogan are said to have a close rapport, fostered in the wake of a failed coup against Erdogan in 2016 when Putin was the first major leader to offer his support.

The Turkish president has maintained those during the 18-month war in Ukraine. Turkey hasn’t joined Western sanctions against Russia following its invasion, emerging as a main trading partner and logistical hub for Russia’s overseas trade.

Associated Press