Daily Management Review

FT finds out terms of the grain deal extension


The FT has discovered that Russia will be permitted to utilize a pipeline to pump ammonia across Ukraine in exchange for agreeing to extend the grain agreement.

Martin Vorel via LibreShot
Martin Vorel via LibreShot
According to sources cited by the Financial Times, Russia and Ukraine are close to reaching an agreement to renew the grain deal involving shipping of Ukrainian grain through Black Sea ports. They claim that the negotiators are certain that after striking an agreement with Russia on agricultural settlements and ammonia deliveries, Moscow and Kiev will consent to extending the pact.

Four sources claim that Russia will be granted access to the ammonia pumping pipeline that passes through Ukrainian-controlled Odessa in exchange for agreeing to renew the agreement.

The FT writes that the pipeline's restart, which was used to transport 2.3 million tonnes of ammonia before the open conflict began, could net Moscow an extra $2.4 billion in export earnings. The reactivation of the pipeline, according to the newspaper, is politically sensitive for the Ukrainian government because they want to stop Russia from making money off the sale of fertilizers. Additionally, the transportation profits from this pipeline only amount to roughly $100 million annually for Kiev.

source: ft.com