The United Nations Secretary General on Thursday welcomed an agreement by all parties to extend the Black Sea grain deal to facilitate Ukraine‘s agricultural exports from its southern Black Sea ports, according to Reuters.
The deal provides for automatic extension for another 120 days unless one of the parties decides to pull out or modify it, Bloomberg reports.
“I welcome the agreement by all parties to continue the Black Sea grain initiative to facilitate the safe navigation of export of grain, foodstuffs and fertilisers from Ukraine,” UN Secretary General Antonio Guterres said in a statement on Thursday.
Gueterres stated that the UN was also fully committed to removing the remaining obstacles to exporting food and fertilisers from the Russian Federation- a part of the deal Moscow sees as critical.
The original pact, struck in late July revived seaborne exports from Ukraine after Russia blockaded the country’s ports following its invasion. It was brokered by Turkey and the UN with Ukraine and Russia and signed for an initial 120 days, which are due to run out Saturday.
Wheat prices fell 1.6% as the deal facilitates exports from a major food growing region.
“Ukraine still wants the deal extended by a whole year, and with one more port added to the accord,” said Infrastructure Minister Oleksandr Kubrakov. He added they are still waiting for a response.
President Vladimir Putin had complained that the deal didn’t do enough to ease exports of Russian grains and fertilizer, even though they aren’t subject to sanctions and shipment volumes rose.
The UN said it is “fully committed to removing the remaining obstacles to exporting food and fertilizers from the Russian Federation.”