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UN presses Kyiv and Moscow to agree fertiliser deal in Black Sea

UN presses Kyiv and Moscow to agree fertiliser deal in

The UN is urgent Russia and Ukraine to agree a deal on chemical exports via the Black Sea in a bid to ease international fertiliser costs and solidify Vladimir Putin’s dedication to the present cargo settlement on grain.

UN diplomats have been holding discussions with Kyiv and Moscow to reopen a pipeline carrying ammonia — a key ingredient within the manufacturing of nitrate fertilisers — from Russia to Ukraine’s Black Coastline, in line with three folks briefed on the talks.

Rebeca Grynspan, the UN official who has been main the duty power, confirmed the negotiations in a press release to the Monetary Occasions.

“Talks are transferring in the correct path and each effort is being made by all events at each degree to make sure a constructive final result,” she mentioned, including that negotiations have been persevering with “urgently” with the goal of averting “a meals disaster on a worldwide scale” within the years forward.

The proposal is a part of an settlement on meals and fertiliser promised to President Putin in trade for backing a grain deal between Moscow and Kyiv in July. It might enable Russian ammonia shipments to make use of the identical sea hall that has transported near 3mn tonnes of wheat, corn and different foodstuffs from beforehand blockaded Ukrainian ports.

If profitable, such a deal would enable 2mn tonnes of the chemical element — value about $2.4bn at present costs — to be shipped annually from Russia, in line with the folks briefed on the talks.

Negotiators hope it might assist assuage a worldwide meals disaster in addition to bolster the present deal on grain by giving Putin extra of a stake in its success. Discussions have intensified in latest weeks.

The Kremlin and the Ukrainian governments didn’t instantly reply to requests for remark.

Putin harshly criticised the grain deal final week, elevating fears that the settlement might collapse. His complaints — he wrongly claimed that a lot of the grain shipments weren’t headed to poor international locations — have been echoed by Turkey’s president Recep Tayyip Erdoğan, who helped to dealer the grain deal. The 2 leaders are assembly in Samarkand, Uzbekistan, this week.

It’s unclear whether or not the latest navy setback Kyiv has inflicted on Russian forces in northeastern Ukraine will weigh on the talks.

Ammonia is a key element of fertilisers. Russia was supplying 20 per cent of the world’s seaborne cargos of the chemical ingredient earlier than Moscow’s invasion of Ukraine, in line with analysis firm ICIS.

Fertiliser costs have greater than doubled up to now yr, in line with the UN, partly as a result of a pipeline linking the southwestern Russian area of Samara to the Ukrainian Black Sea port of Pivdennyi was halted in February. The pipeline used to hold about 2.3mn tonnes of Russian ammonia a yr, in line with information supplier Argus Media.

Map showing ammonia pipeline through Russia and Ukraine

The UN can be in search of the discharge of 20,000 to 40,000 tonnes of ammonia trapped in Pivdennyi, in line with two of the folks.

Kyiv would profit from revenues within the “excessive tens or low lots of” of tens of millions of {dollars} in transit and port charges, one in all them mentioned. The UN can be pushing Moscow to permit grain shipments from a fourth port, Mykolayiv, which has been beneath heavy Russian artillery hearth and is situated near a present Ukrainian offensive round Kherson within the south.

A sticking level is the right way to share the revenues, and whether or not to carry them in an escrow account till the struggle is over.

Further reporting by James Politi in Washington, Emiko Terazono in London, Polina Ivanova in Berlin and Roman Olearchyk in Kyiv

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