Global Fertilizer Prices May Rise Again, UN Secretary-General sent Letter to Putin
July 12, 2023: The spokesperson for the UN Secretary-General, Mr. Dougalik, stated in a statement today that Secretary-General Guterres sent a letter to Russian President Putin on Tuesday, suggesting measures to ensure the continued operation of the Black Sea Initiative and further implementation of the Memorandum of Understanding.
On July 22, 2022, under the active mediation of the United Nations, Russia, Turkey, and Ukraine jointly signed the Black Sea Initiative, allowing the export of grains, other foodstuffs, and fertilizers, including ammonia, from Ukraine's three main ports to destinations worldwide through secure maritime humanitarian corridors.
Russia also signed a Memorandum of Understanding with the United Nations to ensure the international market access for Russian food and fertilizers.
In the nearly one year since the implementation of the Black Sea Initiative, over 32 million tons of grain commodities have been exported from Ukraine's three Black Sea ports to 45 countries across three continents, resolving the supply issues of essential food commodities and reversing the record-breaking increase in global food prices.
The Food and Agriculture Organization (FAO) food price index has steadily declined over the past year, dropping over 23% from its peak in March 2022.
The statement noted that the Secretary-General has been highly committed to ensuring the continued global market access for Russian and Ukrainian food and fertilizers to promote global food security. The full implementation of the agreement signed in Istanbul in July 2022 is crucial to ensuring the smooth, efficient, and large-scale entry of these products into the global market.
Call for Extension of the Black Sea Initiative
Given that the Black Sea Initiative is set to expire on July 17, Secretary-General Guterres sent a letter to Russian President Putin on Tuesday, suggesting measures to ensure the continued operation of the Black Sea Initiative and further implementation of the Memorandum of Understanding.
Dougalik emphasized, "The goal is to eliminate the obstacles faced by Russian Agricultural Bank in conducting financial transactions, which is a major concern expressed by the Russian side, while allowing Ukrainian food to continue to be exported via the Black Sea."
According to reports, the European Union is considering indirectly allowing the Russian Agricultural Bank to regain access to the Society for Worldwide Interbank Financial Telecommunication (SWIFT) system, thereby encouraging Russia to agree to extend the Black Sea Initiative.
Russia has repeatedly stated that the agreement regarding the normalization of Russian food and fertilizer exports has not been fulfilled, and there is no reason to extend the Black Sea Initiative further.
Primary Concern
The statement highlighted that the Secretary-General will continue to emphasize the importance of Russian and Ukrainian food and fertilizer exports for global food security. His primary concern remains the vulnerable populations around the world.
If the agreement signed in Istanbul cannot be further implemented, it may lead to another increase in global food and fertilizer prices, which would cause the greatest harm to vulnerable populations worldwide.
The Secretary-General will continue to engage with all relevant parties on this issue and expresses willingness to further communicate with Russia regarding his proposal.
