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Moscow blames sanctions for Russia-UN food deal collapse

Moscow blames sanctions for Russia-UN food deal collapse

CNA12-07-2025
MOSCOW: Russia said on Saturday (Jul 12) that its agreement with the United Nations to facilitate exports of Russian food and fertilisers had collapsed due to Western sanctions over Moscow's offensive in Ukraine.
A day earlier, the UN said the three-year agreement, signed in 2022 in a bid to rein in global food prices, would end on Jul 22.
A source close to the discussions, who asked not to be named, told AFP the deal "will not be renewed" due to disagreements.
The UN signed the agreement with Russia on Jul 22, 2022, with the aim of facilitating exports of Russian food and fertilisers, despite Western sanctions on Moscow.
Russia's foreign ministry said on Saturday that extending the deal was not "envisaged".
"Given the destructive line of Western capitals ... to increase illegal unilateral sanctions against Russia, none of the objectives (of the agreement) have been successfully completed," the ministry said in a statement.
The economic sanctions imposed on Russia spared fertilisers and grain, but fear of accidentally ending up on the wrong side of the law had paralysed transporters and caused insurance premiums to skyrocket.
After intense discussions, Russia and the UN established a framework to facilitate insurance and financial transactions that was compatible with US, British and European Union sanctions systems.
But Russia - the world's largest fertiliser producer - had repeatedly complained the agreement was doing little to protect it from secondary sanction effects.
Russia's foreign ministry said on Saturday that talks between two sides could continue for the sake "of global food security".
A second agreement was also signed under the auspices of the UN on Jul 22, 2022, aimed at allowing the export of Ukrainian cereals blocked by Russia's war in the country.
That deal was seen as more successful, but Moscow, angered over continued obstacles to trade in Russian agriculture products, refused to extend it after it lapsed in July 2023.
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