The Black Sea Grain Initiative: What it is and why it matters to the world
The initiative was created to restore the export of vital food and fertilizers from Ukraine to the rest of the world. Here are some key points to understand.
Since the beginning of Russia's invasion of Ukraine, exports of grain from Ukraine, as well as food and fertilizers from Russia, have suffered significantly. The supply disruption further pushed up prices and contributed to the global food crisis.
The Black Sea Grain Initiative, brokered by the UN and Turkey, was created to restore exports of vital food and fertilizers from Ukraine to the rest of the world. Here are some key points to understand.
1. Agreement on restoration of vital supplies
Ukraine, one of the world's largest grain exporters, normally supplies the world market with about 45 million tons of grain each year, but after Russia invaded the country in late February 2022, mountains of grain piled up in silos and ships were unable to make safe passage to and from Ukrainian ports. and land routes cannot compensate.
This contributed to a spike in the prices of staple foods around the world. Coupled with rising energy costs, developing countries have been pushed to the brink of debt default and more and more people are on the brink of starvation.
On July 22, the United Nations, the Russian Federation, Turkey and Ukraine agreed on the Black Sea Grain Initiative at a signing ceremony in Turkey's largest city, Istanbul.
The agreement allowed the resumption of exports from Ukraine of grain, other food products and fertilizers, including ammonia, through a safe maritime humanitarian corridor from three key Ukrainian ports: Chornomorsk, Odesa, and Yuzhno/South, to the rest of the world.
To implement the agreement, a Joint Coordination Center (JCC) was established in Istanbul, which included high-ranking representatives of the Russian Federation, Turkey, Ukraine, and the UN.
According to the procedures issued by the JCC, vessels wishing to participate in the Initiative will undergo an inspection off Istanbul to ensure that there is no cargo on board and then proceed through the Maritime Humanitarian Corridor to Ukrainian ports for loading. The corridor is established by the JCC and monitored 24/7 to ensure the safe passage of vessels. Vessels on the return journey will also be checked in the inspection area near Istanbul.
2. Millions of tons leave Ukraine
Cargoes controlled by the Initiative began to be sent on August 1. By the end of the month, more than 100 ships with more than a million tons of grain and other foodstuffs left Ukraine. As of mid-September, the JCC reported that about three million tons had left Ukraine, indicating positive progress. We hope to eventually export up to five million tonnes per month.
According to UN data, 51 percent of the cargo currently (as of mid-September) was corn, 25 percent wheat, 11 percent sunflower products, 6 percent rapeseed, 5 percent barley, 1 percent soybeans. , and one percent of other food products.
3. About a third of supplies go directly to low-income countries
25 percent of cargo is sent to low- and lower-middle-income countries. Egypt (8 percent), India and Iran (4 percent each), Bangladesh, Kenya, and Sudan (2 percent each), Lebanon, Yemen, Somalia, Djibouti (1 percent each), and Tunisia (less than one per cent)
This includes UN-chartered ships that deliver humanitarian food aid - the World Food Programgrams (WFP) bought wheat - to the Horn of Africa and Yemen. Two vessels chartered by the UN have already left Ukraine, two more are expected soon. WFP has so far procured 120,000 metric tonnes of wheat to support humanitarian aid in the Horn of Africa, Yemen and Afghanistan.
The first vessel chartered by WFP docked in Djibouti on 30 August to support drought relief efforts in the Horn of Africa. A second UN-chartered ship, loaded with 37,500 metric tons of wheat, set sail on August 30 and docked in Turkey on September 3, where the wheat will be ground into flour.
This flour will then be loaded onto another ship bound for Yemen to support WFP humanitarian aid there. The third and fourth vessels chartered by WFP will also supply wheat for relief operations.
About 25 percent of grain is sent to upper-middle-income countries, including Turkey, China and Bulgaria; and 50 percent to high-income countries such as Spain, the Netherlands, Italy, the Republic of Korea, Romania, Germany, France, Greece, Ireland, and Israel.
The UN notes that all the grain coming from Ukrainian ports thanks to the Initiative benefits people in need, as it helps calm markets and limit the rise in food prices.
All vessel movements can be found on the Black Sea Grain Initiative website, which also contains useful facts and figures.
4. Food prices are falling
There are strong signs that the Initiative is succeeding in one of its key goals, reducing food prices.
At a press briefing in mid-September, Rebecca Greenspan, secretary-general of the UN trade agency known as UNCTAD, and Amir Abdullah, the UN coordinator for the Black Sea Grains Initiative, welcomed the fact that prices had fallen for five months. line: The food price index is down nearly 14 percent from its peak in March this year.
Mr. Abdullah explained that the drop in prices meant that those who were hoarding grain in the hope of selling at a higher profit are now selling, which means there is now more food in the markets, leading to a further drop in prices. Ms Greenspan, who is also co-ordinator of the UN's Global Task Force, set up to help countries deal with the triple economic shocks exacerbated by the war in Ukraine, said it was making a huge difference in the global cost of living.
Globally, a record 345 million people in more than 80 countries are currently facing acute food insecurity, and up to 50 million people in 45 countries are at risk of starvation without humanitarian assistance.
In August, WFP Executive Director David Beasley called the opening of Black Sea ports "the most important thing we can do now to help the world's hungry." He warned that, although this alone will not stop world hunger, the return of Ukrainian grain to world markets will increase the chances of preventing the development of a global food crisis.
5. Continuous cooperation is necessary for further success
The UN is well aware that the uninterrupted shipment of goods from Ukrainian ports will require further cooperation between Ukraine and Russia. Mr. Abdullah praised the "spirit of cooperation" between the Initiative's parties. He also noted the special role played by Turkey and the UN in supporting the process.
However, with no end in sight to the war, the future is uncertain.
The current initiative can be extended beyond the initial 120 days after the July 22 signing date if the parties so choose. The JCC team in Istanbul is already thinking about extending the deal. Mr. Abdullah remains positive, expressing hope that "with the mediation efforts of the United Nations, this will really not be an issue."