Renewal of Black Sea Grain Initiative Agreement May Hinge on Reopening of Ammonia Pipeline
The Deals
The United Nations and Türkiye brokered the Black Sea Grain Initiative for an initial 120 days last July to help tackle a global food crisis worsened by Moscow’s invasion of Ukraine, one of the world’s leading grain exporters. It has been extended three times since, most recently until July 17.
More than 31 million tons of mostly corn and wheat have been exported by Ukraine under the deal. The Black Sea Grain Initiative also allows for the safe export of ammonia – a key ingredient in nitrate fertilizer – but none has been shipped.
To convince Russia to agree to the Black Sea Grain Initiative, a three-year pact was also struck last July in which the U.N. agreed to help Moscow overcome any obstacles to its own food and fertilizer shipments.
Ammonia
A pipeline used by Russia to pump up to 2.5 million tons of ammonia annually for global export to Ukraine’s Pivdennyi port on the Black Sea from Togliatti on the Volga River in western Russia has been shut down since Moscow’s invasion of Ukraine.
It is the world’s longest ammonia pipeline at about 2,470 kilometers (1,534 miles) in length, according to the International Energy Agency (IEA).
Ukrainian authorities have said workers would need about 30 days to prepare the pipeline to pump ammonia again.
Ukraine
The Black Sea Grain Initiative covers the “safe navigation for the export of grain and related foodstuffs and fertilizers, including ammonia” from the Ukrainian Black Sea ports of Odessa, Chornomorsk and Pivdennyi, known in Russian as Yuzhny.
Ukraine has argued that the language of the deal does not cover the transit of Russian ammonia across Ukraine. A Ukrainian government source told Reuters that Kyiv would consider restarting the pipeline in exchange for expanding the Black Sea grain deal to include more ports and commodities.
Russia
Russia said the transit of ammonia “although not spelled out literally, is implied by the logic of the agreement.” Moscow has said it was “ready without delay, in a matter of days” to restart the ammonia pipeline.
Until the ammonia pipeline is restarted, Moscow has said it will limit the number of vessels allowed to travel to Pivdennyi port under the Black Sea deal, the U.N. said.
U.N. data shows no ships have visited Pivdennyi port for more than three weeks.
Under the Black Sea Grain Initiative, a joint coordination center in Istanbul made up of officials from Ukraine, Russia, Türkiye and the U.N. agrees on the ships to be registered and conducts inbound and outbound inspections in Turkish waters.
U.N. Proposal
In September, Reuters reported that the U.N. proposed that ammonia gas owned by Russian fertilizer producer Uralchem be brought via pipeline to the Russia-Ukraine border.
At the border, it would be purchased by U.S.-headquartered commodities trader Trammo, according to the proposal. Trammo has been approached by the U.N. to assist in this project and is happy to cooperate, it said in an emailed statement.
The United Nations has consistently pushed for the reopening of the ammonia pipeline.
Reuters reported last week that the U.N. proposed that Kyiv, Moscow and Ankara start preparatory work on restarting the pipeline while conducting parallel talks to broaden the Black Sea deal to include more Ukrainian ports and other cargoes.
