Ukraine, Russia sign deal to reopen grain export ports as war rages on

Russia and Ukraine will sign a deal on Friday to reopen Ukrainian Black Sea ports for grain exports, Turkey and the United Nations said, raising hopes that an international food crisis aggravated by the Russian invasion can be eased.

Russia and Ukraine, both among the world’s biggest exporters of food, sent their defence and infrastructure ministers respectively to Istanbul to take part in a 1330 GMT signing ceremony, the two sides said. UN Secretary-General Antonio Guterres, expected to co-sign the accord, and Turkish President Tayyip Erdogan were to attend.

But fighting continued unabated in Ukraine’s east and, underlining deep-seated enmity and mistrust, a Kyiv presidential adviser said it would sign no documents with Russia, rather only parallel deals on grain exports with the United Nations.

“In case of provocations, (there will be) an immediate military response” by Ukraine, Mykhailo Podoloyak tweeted.

The blockade by Russia’s Black Sea fleet has worsened global supply chain disruptions and, along with Western sanctions imposed on Moscow, stoked high inflation in food and energy prices since Russian forces swept into Ukraine.

Full details of the accord were not immediately released.

But Russian state news agency TASS, citing an unnamed source, said that three Ukrainian ports including the biggest export hub Odesa would be reopened. Some 20 million tonnes of grain are stuck in silos at Odesa, and dozens of ships have been stranded by Moscow’s offensive.

Russia cuts rates to 8%

Russia’s central bank brought interest rates below their level before the invasion of Ukraine, easing monetary policy more than forecast as it navigates risks to inflation and the economy from sanctions.

Policy makers lowered their benchmark to 8per cent from 9.5 per cent on Friday and signaled they will consider further reductions in the second half of the year. 

The fifth straight cut was bigger than predicted by any of the economists surveyed by Bloomberg. 
 

(Bloomberg)