The EU sanctioned 79 vessels, including four accused of undermining or threatening “the economic subsistence or food security of Ukraine, such as the transport of stolen Ukrainian grain.”

Russia currently holds about 20 per cent of Ukrainian territory, with the four regions it officially calls “the new territories” accounting for about five per cent of Russia’s total grain harvest, estimated at 130 million metric tons in 2024.

In its balance of payments report, the central bank noted the increasing pressure of Western sanctions on Russian exports, which fell by two per cent in 2024. Russia is the world’s largest wheat exporter.

“The EU has added more than 50 vessels to the sanctions list, which are subject to a ban on entering ports and receiving services, including those transporting grain,” the central bank said.

The EU listed vessels San Damian, San Cosmas, San Severu, and Enisey in the list published on Dec. 16, 2024. Russia-registered Enisey can transport up to 44,000 tons of cargo.

The central bank said Turkey’s ban on wheat imports, introduced following a good harvest and partly to protect farmers from low prices, also played a role. Turkey was a major importer of Russian wheat.

Agriculture Minister Oksana Lut earlier said that Russian grain exports will fall by one-fifth from last season’s record to 57 million tons in 2024-2025, attributing the decline to bad weather.

The share of agricultural products in Russia’s total exports rose to 10 per cent after about 10 years of strong growth in the sector, triggered by Moscow’s ban on food imports from Western countries, imposed in 2014.

—Reporting by Gleb Bryanski

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Like much of Europe, Poland has been gripped by protests in recent weeks as farmers demonstrate against EU environmental regulations and what they say is unfair competition from Ukraine since the bloc waived duties on imports in 2022.

Last week, Tusk said that market disruptions were also caused by agricultural products from Russia and Belarus and did not rule out introducing a ban.

“I would like to inform you that today I will turn to the Speaker of the Parliament with a proposal for a resolution calling on the European Commission to impose sanctions on food products from Russia and Belarus,” said Tusk during a joint conference with Lithuanian Prime Minister Ingrida Simonyte.

Tusk said that joint EU decisions would be more effective than measures introduced by individual countries. Simonyte said Vilnius would support the initiative.

–Reporting for Reuters by Adrius Sytas, Alan Charlish, and Pawel Florkiewicz.

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Moscow’s demands include allowing the Russian Agricultural Bank to return to the SWIFT banking system and unblocking the accounts and financial activities of Russian fertilizer companies.

The deal allowing the safe wartime export of Ukrainian grain from its Black Sea ports, initially brokered last July by Turkey and the United Nations, was renewed on Saturday for at least 60 days, half the intended period.

The United States strongly supports U.N. efforts to get Ukrainian and Russian agricultural products to world markets, said a State Department spokesperson, adding that it has “gone to extraordinary lengths to clarify that we have carved food and fertilizer out from our sanctions imposed on Russia.”

The aim of last July’s deal was to combat a global food crisis fueled in part by Russia’s February 2022 invasion of Ukraine and Black Sea blockade.

Before the war, Ukraine was the world’s fourth-largest corn exporter and fifth-biggest wheat seller, a main supplier to poor countries in Africa and the Middle East. Russia is a top exporter of fertilizer.

To help persuade Moscow to sign the deal, a three-year pact was also struck in which the U.N. agreed to help Russia with its food and fertilizer exports. The United Nations has said that while progress has been made, there were still impediments, particularly with payment systems.

Difficult

Deputy U.N. spokesman Farhan Haq said on Monday that while those Russian exports were not sanctioned, the United Nations had been trying to “increase the level of comfort” among governments in order to free up the passage of these exports.

“It’s been difficult, but we’re going to continue … And we’ll see what progress can be made,” he said. “It’s important not simply … for Russia, but for the people around the world. Everyone needs these crops and this fertilizer in order to continue to ensure that food production is at a decent rate.”

The U.S. State Department spokesperson said that Russian food and fertilizer exports are tracking with previous years and Ukraine’s exports of food are down by more than a third.

“The only prohibitions on food and fertilizer exports from Russia are those imposed by the government of the Russian Federation,” the spokesperson said. “Russia is the one restricting its exports — it imposed export quotas on certain fertilizers, and recently extended them through the spring.”

Ukraine says that so far it has exported 35.8 million tonnes of grain compared with 44.8 million this time last year.

Russia suspended publication of export data a year ago to avoid “speculation.” Sovecon agriculture consultancy estimates that Russia’s wheat exports in the period from July 2022 to February 2023 rose by 9.7 per cent.

Russia’s fertilizer exports, which has been subject to government-set quotas since 2021, were expected to fall by 10 per cent in 2022, according to an official, though major producer Phosagro has already reported record sales for the last year.

— Reporting for Reuters by Michelle Nichols, Daphne Psaledakis, Pavel Polityuk, Polina Devitt and Nigel Hunt.

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The pact was brokered with Russia and Ukraine by the United Nations and Turkey in July and renewed for a further 120 days in November. The aim was to combat a global food crisis that was fueled in part by Russia’s Feb. 24, 2022, invasion of Ukraine and Black Sea blockade.

The deal had been set to expire on Saturday.

The UN and Turkey said on Saturday that the deal had been extended, but did not specify for how long. Ukraine said it had been extended for 120 days. But Russia’s co-operation is needed and Moscow only agreed to renew the pact for 60 days.

“The Black Sea Grain Initiative, alongside the Memorandum of Understanding on promoting Russian food products and fertilizers to the world markets, are critical for global food security, especially for developing countries,” UN spokesman Stephane Dujarric said in a statement.

Russia and Ukraine are key global suppliers of food commodities and Russia is also a top exporter of fertilizer.

Ukraine’s Agriculture Minister Mykola Solsky said Ukraine had supplied nearly 500,000 tonnes of wheat for UN aid programs, and insisted on Saturday that the Black Sea export pact had been extended for 120 days and was an opportunity to keep helping those in need and “save the world from hunger.”

To help persuade Russia to allow Ukraine to resume its Black Sea grain exports last year, a three-year deal was also struck in July in which the UN agreed to help Russia with its food and fertilizer exports.

Demands

Western powers have imposed tough sanctions on Russia for its invasion of Ukraine. While its food and fertilizer exports are not sanctioned, Moscow says restrictions on payments, logistics and insurance industries are a barrier to shipments.

Russia’s UN Ambassador Vassily Nebenzia said on Friday that the European Union, the United States and Britain now “have two months to exempt from their sanctions the entire chain of operations which accompany the Russian agricultural sector,” if they want the Ukraine Black Sea grain deal to continue.

U.S. Ambassador to the UN Linda Thomas-Greenfield responded that Washington had “gone to extraordinary lengths to communicate the clear carve-outs for food and fertilizers to governments and to the private sector.”

In a letter to UN officials dated March 16, and posted on Twitter by a Russian diplomat on Saturday, Nebenzia spelled out what Moscow wanted resolved — allowing the Russian Agricultural Bank to return to the SWIFT banking system and allowing the supply to Russia of agricultural machinery and spare parts.

Nebenzia also said restrictions need to be lifted on insurance and access to ports for Russian ships and cargo, a pipeline that delivers Russian ammonia to a Ukrainian Black Sea port needs to be restarted, and the accounts and financial activities of Russian fertilizer companies should be unblocked.

The UN has said that while progress has been made on facilitating Russian agricultural exports, there were still impediments, particularly in relation to payment systems.

Dujarric said on Saturday that the UN was strongly committed to implementing both the Ukraine Black Sea grain deal and the pact with Moscow and urged “all sides to redouble their efforts to implement them fully.”

Ukraine has so far exported nearly 25 million tonnes of mainly corn and wheat under the deal, according to the UN. The top primary destinations for shipments have been China, Italy, Spain, Turkey and the Netherlands.

— Reporting for Reuters by Huseyin Hayatsever in Ankara and Michelle Nichols at the UN; additional reporting by Max Hunder and Nick Starkov in Kyiv; writing by Michelle Nichols.

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The pact is due to expire on Saturday. It was brokered with Russia and Ukraine by the United Nations and Turkey in July — and renewed in November — to combat a global food crisis that was fueled in part by Moscow’s Feb. 24, 2022 invasion of neighbouring Ukraine and blockade of its Black Sea grain exports.

“For us, the text in the agreement is clear and it calls for a 120-day rollover,” UN spokesman Stephane Dujarric told Reuters when asked about remarks by Turkey.

Turkey said on Wednesday that it would continue talks to extend the deal for 120 days rather than 60 days. Ukraine has also said the agreement should be renewed for 120 days.

“The deal is being extended for 60 days,” Russian Foreign Ministry spokeswoman Maria Zakharova told reporters on Thursday, when asked to comment on Dujarric’s remarks.

The difference in the Russian and UN interpretation of the duration of the deal “may simply be a display of (the UN’s) incompetence,” she added.

Senior UN and Russian officials met in Geneva on Monday to discuss extending the grain deal.

To help persuade Russia to allow Ukraine to resume its Black Sea grain exports last year, a three-year deal was also struck in July in which the United Nations agreed to help facilitate Russian food and fertilizer exports.

Western powers have hit Russia with tough sanctions over its invasion of Ukraine. While its food and fertilizer exports are not under sanctions, Moscow says restrictions on payments, logistics and insurance industries are a barrier to such shipments.

“Meaningful progress has been made but it is true that some obstacles remain, notably with regard to payment systems. Our efforts to overcome those obstacles will continue unabated,” Dujarric said on Tuesday.

Ukraine has so far exported nearly 25 million tonnes of mainly corn and wheat under the deal, according to the United Nations. The top primary destinations for shipments have been China, Italy, Spain, Turkey and the Netherlands.

When asked on Thursday about Russia’s proposal for a 60-day extension, China — a strategic partner of Moscow — called for the deal to be implemented in a balanced and comprehensive manner. Foreign ministry spokesperson Wang Wenbin also said China would like to strengthen communication with all parties and enhance global food security.

— Reporting for Reuters by Michelle Nichols; additional reporting by Filipp Lebedev in Moscow.

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Vershinin’s statement came after talks with U.N. officials in Geneva.

The Black Sea grain initiative, brokered between Russia and Ukraine by the United Nations and Turkey last July, aimed to prevent a global food crisis by allowing Ukrainian grain blockaded by Russia’s invasion to be safely exported from three Ukrainian ports.

The deal, which was extended for 120 days in November, is up for renewal on Saturday.

In a statement after talks with U.N. trade official Rebeca Grynspan and aid chief Martin Griffiths, Vershinin said that despite a “comprehensive and frank conversation,” Russia noted that restrictions on its agricultural exporters remained.

Russia has argued that, although the country’s agricultural exports have not been explicitly targeted by the West, sanctions on its payments, logistics and insurance industries have created a barrier for it being able to export its own grains and fertilizers.

Russia “does not object to another extension of the ‘Black Sea Initiative’ after its second term expiration on March 18, but only for 60 days,” Vershinin said.

“Our further stance will be determined upon tangible progress on normalization of our agricultural exports, not in words, but in deeds,” he added.

A senior Ukrainian government official involved in the talks to secure the initial deal said Kyiv considered a 60-day extension to be in violation of the agreement’s terms.

“The agreement clearly states that extensions are possible for a minimum of 120 days,” he told Reuters. “To extend it for 60 days, you have to amend the deal.”

U.N. spokesman Stephane Dujarric told reporters in New York following the talks: “We’re doing everything to preserve the integrity and ensure the continuity of the agreement,”

He said the U.N. was working with Russia, the private sector, the European Union, Britain, the United States and others to facilitate Moscow’s agricultural exports, adding that “obviously a lot of these things are not within the decision-making powers for the United Nations.”

European traders said uncertainty about the talks, especially the statement that Russia only sought an extension for 60 days, was a factor behind sharp rises in prices on the Paris Euronext wheat market.

Moscow had previously signalled it would only agree to an extension if restrictions affecting its own exports were lifted, but many diplomats and senior officials, including Turkish Defence Minister Hulusi Akar, said ahead of the talks they were optimistic the deal would be renewed.

— Reporting for Reuters by Gabrielle Tétrault-Farber and Emma Farge in Geneva, Michael Hogan in Hamburg, Pavel Polityuk in Kyiv and Michelle Nichols in New York.

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The Black Sea Grain Initiative, signed by Russia and Ukraine last July, created a safe corridor to allow grain to be exported from Ukrainian ports blockaded by the war.

The agreement, brokered by the United Nations and Turkey, was extended by a further 120 days in November and is up for renewal again next month, but Russia has signalled it is unhappy with some aspects of the deal and asked for sanctions affecting its agricultural exports to be lifted.

“Our position on the issue of a further continuation of the Black Sea Initiative remains the same,” Russian deputy foreign minister Sergei Vershinin said in an interview with the RTVI broadcaster.

“Without tangible results on the implementation of the Russia-U.N. Memorandum, above all on the real removal of sanctions restrictions on Russian agricultural exports… the extension of the Ukrainian document is inappropriate,” he said.

Russia’s agricultural exports have not been explicitly targeted by Western sanctions, but Moscow says blocks on its payments, logistics and insurance industries are a “barrier” to it being able to export its own grains and fertilizers.

— Reporting for Reuters by Caleb Davis.

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Belarus, used by its ally Russia as a staging ground for Moscow’s Feb. 24 invasion of Ukraine, said in June that it would let Ukrainian grain go via the country to Baltic Sea ports, if Belarus was allowed to ship its goods from the ports as well. Ukraine did not agree to the proposal.

Belarus Deputy Foreign Minister Yury Ambrazevich met with U.N. Secretary-General Antonio Guterres in New York on Friday to tell him that there are no preconditions to the transit of Ukraine grain, U.N. spokesman Stephane Dujarric said.

Ambrazevich also “reiterated the requests from his government to be able export its own fertilizer products, which are currently subject to sanctions,” Dujarric said in a statement after the meeting.

Belarus, a major global potash producer, has been hit by harsh Western sanctions in 2021-22 which disrupted its exports of the fertilizer via the Baltic Sea ports.

In July the United Nations and Turkey brokered a deal with Russia and Ukraine to resume Ukraine’s Black Sea shipments of grain — stalled since the start of the war — and to facilitate Russia’s food and fertilizer shipments.

The United Nations is still working to resume Russian ammonia exports, a key fertilizer ingredient, via a pipeline to a Black Sea port in Ukraine.

The United Nations has said Russia’s war in Ukraine worsened a global food crisis, pushing some 47 million people into “acute hunger” and sparking the need for the July export deal, which was renewed for another 120 days last month.

— Reporting for Reuters by Michelle Nichols and Kanishka Singh.

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The relationship between China and the West has worsened since U.S. House of Representatives Speaker Nancy Pelosi visited Taiwan earlier this month against Beijing’s wishes. China claims Taiwan as its territory and is against foreign politicians visiting the island. Democratically governed Taiwan rejects China’s claims.

In response to Pelosi’s visit, China restricted trade and launched massive military drills around Taiwan, as well as slapped sanctions on Pelosi.

Beijing also imposed sanctions on a Lithuanian minister who visited Taiwan days after Pelosi’s trip.

China said another trip by U.S. lawmakers to the capital Taipei on Sunday was an infringement on its sovereignty and territorial integrity.

The Chinese embassy in Ottawa did not respond to a request for comment.

The Taipei Economic and Cultural Office in Canada did not immediately respond to an emailed request for comment.

Sgro said members of a parliamentary committee on trade have been planning to visit the self-ruled island for some time.

“The intent is not to disrupt and cause problems for Taiwan, or problems for China. It’s about trade, it’s about friendship, it’s about opportunities for Canada, in that whole Asia Pacific region,” Sgro, who heads the trade panel, told Reuters.

Sgro said Canadian lawmakers have visited Taiwan bi-annually in the past but stopped due to the coronavirus pandemic.

“This is part of an ongoing effort for us to ensure that the doors are open for Canadian companies wherever there’s trade opportunity,” Sgro said.

Conservative MP and vice-chair on the trade committee, Randy Hoback, said he would seek guidance from the Canadian foreign ministry before deciding on visiting Taiwan.

“I think we need to get back to normalcy in a lot of things and one of that is in visits and having interaction from country to country,” Hoback told Reuters.

A long-running standoff between Canada and China ended last year when U.S. prosecutors agreed to end a bank fraud case against Huawei chief financial officer Meng Wanzhou, a high-profile Chinese businesswoman. She had been held under house arrest in Canada during extradition proceedings.

After Meng was freed, China liberated two Canadians who had been held by Beijing on espionage charges. China later also resumed certain imports of Canadian canola that had been blocked following Meng’s arrest.

Canadian Prime Minister Justin Trudeau’s government said it respected the decision by lawmakers to visit Taiwan.

“Parliamentary associations and friendship groups travel regularly and we respect their independence,” Canada’s foreign ministry said in a statement.

Canadian Foreign Minister Melanie Joly earlier this month said U.S.-China tensions after Pelosi’s visit could destabilize the Taiwan Strait region and called on Beijing to de-escalate the situation.

— Ismail Shakil is a Reuters reporter in Ottawa.

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Enabling those Russian exports is a key part of attempts by the United Nations and Turkish officials to broker a package deal with Moscow that would also allow for shipments of Ukraine grain from the Black Sea port of Odesa, which have been blockaded by the war.

The written U.S. clarification came a day after Russia, Ukraine, Turkey and U.N. officials met in Istanbul for talks aimed at resuming Ukraine’s grain exports. Turkey announced that the parties would return next week to sign a deal.

“The United States strongly supports efforts by the United Nations to bring both Ukrainian and Russian grain to world markets and to reduce the impact of Russia’s unprovoked war on Ukraine on global food supplies and prices,” the U.S. Treasury Department said in the factsheet.

The war in Ukraine has sent prices soaring for grains, cooking oils, fuel and fertilizer, stoking a global food crisis.

Russia’s Feb. 24 invasion and blockade of Ukraine’s ports has stalled exports, leaving dozens of ships stranded and some 20 million tonnes of grain stuck in silos at Odesa.

Moscow has denied responsibility for worsening the food crisis, blaming instead a chilling effect from Western sanctions for slowing its own food and fertilizer exports and Ukraine for mining its Black Sea ports.

Ukraine and Russia are major global wheat suppliers, and Russia is also a large fertilizer exporter, while Ukraine is a significant producer of corn and sunflower oil.

The U.S. Treasury made clear that the sale and transport of agricultural commodities, as well as medicine and medical devices, was allowed and would not be breaching a raft of sanctions that Washington has imposed on Russia.

Washington also stressed that there were no sanctions on Russia’s production, manufacturing, sale, or transport of agricultural commodities, including fertilizer, and that providing insurance or reinsurance for the transportation or shipping of those products was not prohibited.

Imports of Russian fish and seafood to the U.S. are banned under Washington’s sanctions.

As the U.N.-led talks got underway in May to revive Ukraine and Russian food exports, the U.S. ambassador to the U.N., Linda Thomas-Greenfield, had said Washington was prepared to give written assurances — known as “comfort letters” — to shipping and insurance companies in relation to Russian exports.

— Reporting for Reuters by Daphne Psaledakis and Michelle Nichols.

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