Secretary-General of the United Nations Conference on Trade and Development (UNCTAD) Rebecca Greenspan said the grain deal recently signed in Istanbul depends on the goodwill of all parties in its implementation.
“This is an act of trust, there are no guarantees, there is only good faith efforts and the commitment of all parties to continue this (planned action),” she added.
“We see enough evidence that everyone wants it. If you look at the statement of the G7, in the statements of US Secretary of State Anthony Blinken, they directly say that they support the efforts of the UN Secretary General on food. , and Fertilizer should be out of sanctions precisely because no one wants a food security crisis in the world.”
On the other hand, Greenspan pointed out that the transaction costs of exporting Russian food and fertilizers will be reduced thanks to the grain agreement: “Because there are delivery problems, insurance problems, payment problems, delivery problems, all this world prices will rise . Therefore, the main thing I expect is that these obstacles will disappear and transaction costs will decrease.”
Greenspan noted that UNCTAD estimates that half of the rise in grain prices is due to transport and logistics: “Obviously if we increase trade, trade flows will improve and prices will come down.”
She added that after the signing of the grain deal, the United Nations will form a working group that will deal specifically with these efforts.
She also stressed the need to communicate with partners in Europe, the US and Russian partners to understand the challenges and barriers they face with food and fertilizer.
On Friday, Russia and Ukraine signed agreements in Istanbul with Turkey and the UN to remove restrictions on the supply of Russian agricultural products to the world market and determine the algorithm for exporting Ukrainian grain through the Black Sea. It is assumed that this grain will be exported from three ports – Odessa, Chernomorsk and Yuzhny, along safe corridors.
Ships will be searched for weapons, and warships and aircraft will not be able to approach them without permission. The process will be supervised by a specially created joint coordination center.
On Friday, at a meeting with Russian Defense Minister Sergei Shoigu in Istanbul, UN Secretary-General António Guterres signed a memorandum of understanding to facilitate the supply of Russian agricultural products and fertilizers to world markets. Its mission is to ensure transparent and unimpeded supplies of Russian food and fertilizer products, including raw materials for their production, to world markets. The term of the note is three years.
Source: RIA Novosti