CONDITIONS
While discussions continue around the export of cereals from Ukraine, blocked by Russia, several obstacles still remain to be overcome before the signing of an agreement. The export of wheat, corn and sunflower from Ukraine was 90% by sea and mainly through the port of Odessa, which concentrates 60% of the country’s port activity.
Any agreement will therefore have to frame various essential stages: the first will be the demining of the ports, carried out “by the Ukrainians and/or the UN”, then “the loading of the boats, which could be done under UN cover” and finally “the inspection of loads” and the escort of ships, demanded by Russia, which wants to be able to check that this traffic does not contain weapons, explains Edward de Saint-Denis, broker at Plantureux and associates.
Several points remain highly debated: if Moscow obtains the power to control – and therefore possibly seize – ships, where will this control take place: in Ukrainian or international waters? Which boats will be authorized to carry out these loads, with crews of which nationalities? “Russians don’t want Ukrainians and vice versa,” the broker points out. Turkey had once offered its fleet, but a compromise could be made on “flags of convenience”, according to a market observer.
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