Vladimir Putin criticises grain deal agreed with Ukraine

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Vladimir Putin has criticised a grain deal hashed out with Ukraine that unblocked agricultural merchandise trapped within the nation by his authorities’s navy assault, showing to threaten an settlement that had eased a rising international meals disaster.

In a speech on Wednesday, the Russian chief blamed international grain shortages — which have notably affected poorer nations — on the phrases of the deal brokered in July, somewhat than on the struggle launched by Russia towards Ukraine, a significant grain exporter.

He claimed that grain shipments launched by the deal, which ended Russia’s blockade of Ukraine’s Black Sea ports within the Odesa area and enabled cargo vessels carrying grain and different meals to restart deliveries, weren’t heading to poor nations however to EU members as an alternative.

Addressing a session of an financial discussion board within the far jap Russian metropolis of Vladivostok, Putin steered that routes for the export of Ukrainian grain must be modified in a roundabout way, showing to threaten the way forward for the deal.

All Black Sea grain shipments are logged by the UN, which brokered the deal. In line with its public logs, greater than 2mn metric tons of grain have been transported from Ukrainian ports on 87 ship voyages because the deal was penned.

A World Food Programme staff looks at a ship carrying wheat grain from Ukraine to east Africa
All Black Sea grain shipments are logged by the UN, which brokered the settlement between Russia and Ukraine © Hugh Rutherford/World Meals Programme/Reuters

Of those, 30 have travelled to the EU, whereas 57 shipments have gone to different nations, together with to China, Egypt, India, Iran and Lebanon, and 32 to Turkey.

“The primary main purchases now of grain from Ukraine come from the [UN] World Meals Program,” mentioned James O’Brien, sanctions co-ordinator on the US state division. He added that in earlier years Ukraine had contributed about half of the WFP’s annual meals provides.

“A motive that’s so necessary is the sign it sends to Ukraine’s farmers. Now they know they’ll plant wheat for subsequent 12 months as a result of the key purchaser is again out there,” O’Brien mentioned.

Ukrainian’s infrastructure minister described the Russian chief’s claims as “pretend”. Oleksandr Kubrakov mentioned in a tweet: “Threats and fakes are typical for Russian politics.”

Putin’s remarks have been a part of his broader try and reframe the narrative across the invasion of Ukraine and the fallout for Russia. He offered the struggle as useful for Russia up to now in political phrases, and never as damaging economically as most observers consider it to be.

Russia’s economic system, Putin mentioned, will decline by solely about 2 per cent this 12 months, though most economists consider the drop shall be many instances sharper, after sweeping sanctions roiled its provide chains and left it remoted from the worldwide economic system.

“We’ve got not misplaced something,” Putin mentioned. “The primary acquire has been the strengthening of our sovereignty.”

Joined on the financial discussion board by a small cohort of worldwide leaders — the heads of Myanmar, Mongolia and Armenia — Putin mentioned Russia had no want for ties with the west.

“A sure polarisation is happening, each on the earth and throughout the nation, however I consider that this can solely be useful,” he mentioned, including that every little thing that stops Russia “shifting ahead” shall be rejected.

Sanctions, Putin mentioned, have been harming the west greater than Russia. He additionally claimed that Moscow was discovering it straightforward to seek out different consumers, for instance in China.

However most of Russia’s fuel pipeline infrastructure factors to Europe, and Moscow can not merely redirect fuel gross sales to anyplace apart from its home market. Gross sales to Europe beforehand made up greater than 70 per cent of Russia’s fuel export complete.

“In the long run Russia is shedding without end its largest and most dependable export market,” mentioned Greg Molnár, an analyst on the Worldwide Power Company.

Ursula von der Leyen, president of the European Fee, mentioned on Wednesday that Russian pipeline fuel now accounts for simply 9 per cent of the EU’s fuel imports, down from 40 per cent earlier than the struggle. “Our work is paying off,” she mentioned.

Nonetheless, Russia nonetheless retains a share of the EU’s fuel market that’s roughly comparable with Saudi Arabia’s share of the worldwide oil market.

Russia opened a fuel pipeline to China in 2019 however, though Putin mentioned demand for Russian power in China is rising, this pipeline is fed by completely different gasfields to these supplying Europe.

Russia has lengthy aimed to attach up its Siberian fields, which historically provide Europe, to China, with a line often called Energy of Siberia 2.

Putin mentioned the important thing parameters for the sale of fuel alongside this new pipeline, which isn’t but underneath building however is anticipated to run by way of Mongolia, had been agreed. Mongolia mentioned in July that building of the road was more likely to start in 2024.

Though Russia has repeatedly lower fuel provides to Europe because the begin of the struggle in Ukraine, it has blamed the interruptions on technical points with its generators. On Wednesday, Putin repeated the declare that Russia isn’t utilizing power as a weapon.

He additionally described caps proposed by Europe on Russian fuel costs as “stupidity”, saying they are going to result in value rises. Putin mentioned Russia would stroll away from power contracts, reducing off provides, if the caps have been imposed, warning the west would find yourself “frozen”.

“We won’t provide fuel, oil, coal, heating oil — we won’t provide something,” Putin mentioned.

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