Farmers harvest wheat, amid the Russian attack on Ukraine, in Donbass region, Ukraine July 13, 2022. R/Gleb Garanich
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WASHINGTON, July 14 (R) – The United States on Thursday sought to facilitate Russian food and fertilizer exports by reassuring banks, shipping and insurance companies that such transactions would not violate Washington’s sanctions against Moscow over its invasion of Ukraine would.
Enabling these Russian exports is a key part of attempts by the United Nations and Turkish officials to negotiate a package deal with Moscow that would also allow shipments of Ukrainian grain from the Black Sea port of Odessa, which have been blocked by the war.
The written US clarification came a day after Russia, Ukraine, Turkey and UN officials met in Istanbul for talks aimed at resuming Ukrainian grain exports. Turkey announced the parties would return next week to sign an agreement. Continue reading
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“The United States strongly supports United Nations efforts to bring both Ukrainian and Russian grains to world markets and reduce the impact of Russia’s unprovoked war on Ukraine on global food supplies and prices,” the US Treasury Department said in the fact sheet.
The war in Ukraine has pushed up prices for grain, cooking oil, fuel and fertilizer and fueled a global food crisis.
Eduard Zernin, chairman of the Russian Association of Grain Exporters, called the US move “an act of goodwill” and a “real step in the fight against world hunger”.
“We sincerely hope that other countries involved will follow suit and provide the necessary clarifications and licenses to lift hidden sanctions impeding grain supplies to countries in need,” he told R.
RUSSIA, UKRAINE KEY SUPPLIERS
Russia’s February 24 invasion and blockade of Ukraine’s ports has halted exports, stranded dozens of ships and left some 20 million tons of grain stuck in silos in Odessa.
Moscow has denied responsibility for worsening the food crisis, instead blaming the deterrent effect of Western sanctions for slowing its own food and fertilizer exports and Ukraine for dismantling its Black Sea ports.
Ukraine and Russia are major global wheat suppliers, and Russia is also a major fertilizer exporter, while Ukraine is a major producer of corn and sunflower oil.
The US Treasury Department clarified that the sale and transportation of agricultural commodities, as well as medicines and medical equipment, is permitted and does not violate a number of sanctions that Washington has imposed on Russia.
Washington also stressed that there are no sanctions against Russia’s production, manufacture, sale or transportation of agricultural commodities, including fertilizers, and that providing insurance or reinsurance for the transportation or shipping of these products is not prohibited.
Imports of Russian seafood into the United States are banned under Washington sanctions.
As UN-led talks to revive Ukrainian and Russian food exports began in May, US Ambassador to the United Nations Linda Thomas-Greenfield, Washington had agreed to provide written assurances – known as “comfort letters” – for shipping and Insurance companies related to Russian exports.
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Reporting by Daphne Psaledakis and Michelle Nichols; Edited by Aurora Ellis and Jonathan Oatis
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