Turkey has intensified negotiations with Ukraine and Russia on a new grain corridor

Turkey has stepped up diplomatic talks with Ukraine and Russia on creating a new security mechanism to restore the Black Sea grain corridor. Ankara seeks to unblock grain supplies and prevent further increases in global food prices.

This is reported by the Turkish publication Ekonomim .

The fighting in the Black Sea has effectively put the safety of merchant shipping at risk. According to the publication, ships heading to the Russian port of Novorossiysk are being attacked by Ukrainian forces, while ships heading to the Ukrainian port of Odesa are being targeted by the Russian side.

As a result of the blockade of sea routes, significant volumes of grain in Russia and Ukraine remain in warehouses and port storage facilities. It is estimated that the total volume of products that cannot reach the world market is approaching 100 million tons.

Russia, which supplies about 20% of the world’s wheat exports, has accumulated about 60 million tons of wheat and other grains due to record harvests and export restrictions. Due to problems with the operation of Black Sea ports, much of this product remains in ports and warehouses.

In Ukraine, which before the start of the full-scale war provided a significant part of the world’s exports of sunflower oil, corn, and wheat, there are about 30-35 million tons of grain and oilseeds in storage.

Turkey fears that further blocking of supplies ahead of the new harvest season could lead to significant spoilage of produce and increase pressure on the global food market.

Turkey already played a role as a mediator in 2022, when it participated in the Black Sea Grain Initiative between Russia, Ukraine, and the UN. The mechanism allowed for the export of Ukrainian agricultural products through the Black Sea and contained the global food crisis, but its work later ceased.

Now Ankara is trying to resume the negotiation process and create a new shipping safety mechanism. Diplomatic contacts with Moscow and Kyiv are ongoing, but there are currently no specific deadlines for reaching agreements.

Turkish Deputy Minister of Transport and Infrastructure Durmush Unuvar told maritime industry representatives that negotiations are continuing intensively. At the same time, the Turkish side emphasizes that diplomatic channels with both capitals remain open 24/7.

A separate issue remains the impact of the export ban on farmers and world prices. According to Kazim Taici, head of the Istanbul Grain, Pulses, Oilseeds and Products Exporters Association, the suspension of supplies has already affected the price of grain.

“The grain corridor in the Black Sea has completely stopped working. Now, neither Ukraine nor Russia is supplying Turkey with products. Farmers in both countries are in a difficult situation. They cannot collect their products from the fields, and sales have almost stopped. Due to the fact that products cannot enter the world market, prices have already increased by 4-4.5%. If the problem is not resolved within 2 months, the increase may exceed 10%,” Taiji said.

At the same time, Turkey claims that the country’s domestic market has enough grain. The main risk, according to Taiji, concerns the processing industry and the export of finished products.

“We have sufficient grain production to meet our own needs. However, the main risk concerns our exports of processed grain. We buy grain in Ukraine and Russia, process it in Turkey and export it to world markets. Last year, we exported $13 billion in this way,” he noted.

The Turkish side expects that the agreement on a new security mechanism will allow the restoration of maritime supplies, ensure the operation of the merchant fleet, and reduce the risks of a sharp increase in world food prices.

Recall that Turkey reduced oil purchases from Russian ports in July after attacks on Russian export infrastructure in the Black Sea. In August, supplies may decrease even more, and Ankara is already diversifying imports.

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