After Russia announced the suspension of an agreement on the transit of Ukrainian grain through the Black Sea, and Romanian farmers expressed concern that these goods would put too much pressure on local production, HotNews.ro spoke with Ukraine’s First Deputy Minister of Agriculture. Ukraine, Taras Vysotskyi.

This year, between 15 and 20 million tons of grain would be exported to Ukraine through the so-called Black Sea “grain corridor,” created in 2022 after a UN-Turkey-brokered deal that Russia no longer wants to continue. .

During this time, the Ukrainian authorities are “working on the possibility of exporting products across the Danube without creating problems for Romanian farmers.”

Taras Vysotskyi, First Deputy Minister of Agriculture of Ukraine, stated this in an interview with HotNews.ro.

How, in numbers, will Russia’s refusal to extend the agreement on the export of grain from the Black Sea affect the economic situation in Ukraine?

Taras Vysotskyi: You must understand that the potential of 10-15 million tons of cargo was supposed to be exported through the “grain corridor”. All this volume was planned to be exported during the year. But now there is a possibility that the entire volume cannot be exported.

There will be losses or not – we will figure it out in the winter. So far, the export of this amount through grain corridors is not available.

How much is this in the total volume of annual grain production in Ukraine?

About 25% of the total volume.

How viable is the option of transporting grain through Romania? Are there necessary material and technical conditions for this? And is there a risk that it will affect local farmers?

First, we are working very hard on the possibility of exporting through the Danube without creating problems for Romanian farmers. When exports go through the Danube, via barges, directly to the ports, the focus will be on creating procedures that will not affect Romania’s internal transport.

We understand that they (non-Romanian farmers) also have production processes, exports, have their own needs.

Our goal is to organize the transit in such a way that it does not harm them. And so far we manage to do it. We will continue to do the same so that this transit does not harm Romanian farmers.

Taras Vysotskyi. PHOTO: Screenshot from HotNews.ro

What impact will these procedures have on the farmers of the Republic of Moldova?

All goods will pass through transit. We have an agreement with the Moldovan railway that we will transport all products by rail, but only in transit, including to the Danube ports. There is no risk here. There is an understanding that it will only be about transit.

It is likely that only 5% of the volume passing through Moldova will be exported to this country. Not more.

And won’t it somehow affect grain prices?

There will be none, these volumes will not remain in the country. Probably, more than 90% of the products will transit for export and will not remain in Romania.

What are the main export directions of Ukrainian grain in the current conditions? Will they be changed after the contract is not renewed?

Among the most important export destinations are the countries of the Middle East, Africa and the European Union. Obviously, now it will be more difficult to organize exports to East Asia. It is possible that there will be a smaller volume of exports to East Asia, India and other countries. Approximately, in the case of this region, it is about 20% of the total volume.

How, in your opinion, will the non-renewal of the Black Sea Agreement affect grain prices on the international exchange?

Even if the calculations are preliminary now, we can already say that prices may increase by 30% if the average volume of exports from Ukraine decreases.

What is happening now with agricultural products that would be exported?

Production is preserved. It is obvious that we bear costs in this regard. At the same time, negotiations are ongoing with Turkey regarding an export permit. The validity period is at least 18 months.

Are there any chances that the agreement on the export of Ukrainian grain through the Black Sea will be extended or agreed?

In this regard, we made a request to Turkey. We are waiting for an official answer. Although it will probably be difficult, we hope for a positive outcome.

And yet what are the main reasons for not continuing this agreement?

Russia is an aggressor state that uses food blackmail and wants to create a global food crisis. Because of the president’s position, we will not compromise in this war. Russia must be stopped so that other countries do not suffer from hunger.

What Russia Says About Exiting Grain Agreement (And What It’s Really Doing)

Task forces in Odesa after the Russian missile attack. PHOTO: Libkos / AP / Profimedia

On Monday, July 17, the Russian Federation announced the termination of participation in the agreement concluded under the auspices of the UN, which allowed the export of Ukrainian grain through the Black Sea.

The announcement was made a few hours after Moscow announced Ukraine’s attack on a bridge in Crimea. The Kremlin said that there is no connection between the two events.

Russia says it pulled out of the Ukrainian grain deal because a parallel deal aimed at easing exports of its own grain and fertilizer hit by Western economic sanctions was not honored.

However, in the following days after the expiration of the agreement, the Russian army fired at the infrastructure of the Odesa port with Kalibr missiles.

How does the export of Ukrainian grain through our country affect Romanians?

Ukrainian authorities have announced since last month that if the UN-brokered agreement is not extended, they want grain to be transited through Danube ports.

In this sense, the Deputy Minister of Infrastructure, Yuriy Vaskov, announced that he will initiate steps with the European Commission to obtain consent for the deepening of the Bastro Canal to allow the transit of ships from the sea to the ports of Izmail. and Reni.

At the same time, the other day in an interview with HotNews.ro, Alina Kretsu, executive director of the Romanian Maize Growers Association, said that this year, grain production in Romania is expected to be 15-20% higher than last year. that Romanian farmers fear that Ukrainian grain will put too much pressure on Romanian infrastructure.

• Read also: VIDEO Will we have a new Ukrainian grain crisis in Romania this year? – interview with Alina Kretsu, executive director of the Association of Corn Growers