The world is now witnessing one landmark after the other related to Ukrainian grain freeing endeavor of United Nations. First a deal to export Ukrainian grain via Odesa and other Ukrainian black sea ports between Russia, Ukraine and Turkey in the tutelage of UN was signed and then came another landmark moment when first cargo ship Razoni departed from Odesa under the deal. Now finally modalities have been agreed upon to make resumption of grain and fertilizer shipments from Ukrainian black sea ports including Odesa attractive enough for shipping and insurance companies. Under the new agreement 10 nautical mile buffer zone has been earmarked to protect Ukrainian grain ships.
Black Sea Grain Initiative to Alleviate Global Hunger Can Eventually Lead to End of War
Gutteres, UN secretary general has huge hopes from black sea grain initiative meant to free Ukrainian grains blocked at Odesa port because he believes that Ukraine-Russia war is solely responsible for hunger pangs experienced by this world and resumption of supplies of grains from Ukraine and fertilizer and Long Grain Rice from Russia can end the hunger pangs. His hopes may not be entirely misplaced as unblocking of grains can solve the problem of hunger. 30% of total global wheat production happens in Ukraine and Russia and effect of unblocking of that grain can be easily imagined. This deal has provision for unblocking of Russian fertilizers too. Blockage of Russian fertilizer has caused shortage of fertilizers globally. This has caused famine situation in some regions. So, restoration of supply of Russian fertilizer can stave away famine threat in different parts of the world. This agreement between Russia and Ukraine to earmark 10 nautical mile buffer zone for protection of Ukrainian grain ships signals softening of relations between Ukraine and Russia and can eventually lead to end of war.
Black Sea Grain Initiative To Pick Up Pace After This Agreement
Black sea grain initiative has been in trial phase for two weeks now and 10 ships stranded in Ukraine since commencement of war has departed with soybean, corn and sunflower oil. Schedule of departure of biggest ship was fixed for Tuesday. This ship named ocean lion is headed for South Korea with 64720 metric tonnes of corn.
Commercialization of Black Sea Grain Initiative
Once Lebanese buyer refused to accept consignment exported by first ship leaving Odesa under black sea grain initiative, the initiative automatically became commercial. Lebanese buyer has given delay of five months as reason for refusal. Seller of the consignment is now searching for some other buyer. UN, under whose tutelage black sea grain initiative started has also made it amply clear that export deals under the initiative will be treated as commercial and not humanitarian. Few weeks ago no one could have even imagined that cargo vessels can leave Ukrainian black sea ports despite Russia and Ukraine still engaged in war. This has given rise to hopes of end of war between Ukraine and Russia.
Conclusion
Agreement between Russia and Ukraine to earmark 10 nautical miles buffer zone for the protection of Ukrainian grain ships will go a long in allaying fears of the shipping and insurance industry. Since the safe passage deal came into force, shipping and insurance companies were demanding some extra assurances regarding safety and this agreement will hopefully satisfy them.
