Russia halts Black Sea grain deal as demands remain unfulfilled: RIA Novosti

Russia has halted the Black Sea Grain Initiative and the deal has ceased to function from July 17 as its demand were not met, government news agency RIA Novosti reported, citing Presidential Press Secretary Dmitry Peskov.

"In fact, the Black Sea agreements ceased to be valid today. As the President of the Russian Federation said earlier, the deadline is July 17. Unfortunately, the part relating to Russia, these Black Sea agreements have not been implemented so far. Therefore, its effect is terminated," RIA Novosti quoted Peskov.

Russia had made a series of demands, including unblocking of Russian exports of food and fertilizers, reconnection of the Russian Agricultural Bank to SWIFT payments system, resumption of supplies of agricultural machinery, spare parts and service, restoration work on the Tolyatti-Odessa ammonia pipeline, among others.

Trade sources said Russia went ahead with the suspension of the deal in response to an attack on a bridge in Crimea July 16. The Russian foreign ministry has blamed Ukraine for the incident, but Kyiv has not officially accepted responsibility.

"It wasn't unexpected after the [Crimea] bridge attack," a Ukraine-based trading source said.

The UN and Turkey brokered the Black Sea Grain Initiative between Russia and Ukraine on July 22, 2022, to ensure food supplies through the Black Sea, which were stranded following Russia's invasion of Ukraine.

The deal covers three Black Sea ports of Ukraine -- Odesa, Chornomorsk and Pivdenny. However, Russia has not allowed ships to register for Pivdenny, the largest of these.

Under the corridor, 32.9 million mt agricultural products were exported by Ukraine till July 16, data from the Black Sea Initiative Joint Coordination Centre showed. The last ship left Ukraine under the deal July 16.

Peskov has, however, added that if Russia's demands are fulfilled it "will return to the implementation of this deal immediately."

Russian President Vladimir Putin said July 13 that it would suspend participation in the deal if its demand were not met.

Platts, part of S&P Global Commodity Insights, assessed Russian 12.5% FOB wheat at $229/mt and Ukrainian 11.5% FOB wheat at $202/mt July 14, unchanged on the day.

Platts assessed Ukrainian FOB corn at $196/mt on July 14, up $2/mt day on day. Platts assessed rapeseed oil FOB Dutch mill at $936/mt on July 14, unchanged day on day.