Ukrainian crop exports plunge ahead of grain deal talks – Bloomberg  

Negotiations aimed at providing safe passage for agricultural produce via the Black Sea are set to start this week

Grain exports from Ukraine are plunging ahead of this week’s talks in Istanbul on extending the Black Sea grain deal, Bloomberg reported on Wednesday.

Daily vessel inspections have been disrupted after the parties failed to agree on the authorization of new ships to join the Black Sea exports, causing delays in grain deliveries.

This follows restrictions imposed by the European Union on the import of Ukrainian wheat, maize, rapeseed and sunflower seeds to Bulgaria, Hungary, Poland, Romania and Slovakia ahead of the next harvest.

Earlier this month, the European Commission announced the "exceptional and temporary preventive measures on imports" of the four items to "alleviate logistical bottlenecks" in five member states for at least a month.

"Many farmers and big agricultural producers are concerned about their ability to export their grain and oilseed products because we see these issues on both sides," Roman Slaston, CEO of the Ukrainian Agribusiness Club, told Bloomberg by phone.

Last year the UN and Türkiye brokered an agreement which allows the safe export of Ukrainian grain though the Black Sea. The deal also requires Western countries to unblock Russian grain and fertilizer exports. In March, Russia agreed to extend the deal by 60 days, to May 18, warning it would not renew the accord unless its own exports were unblocked by the West.

READ MORE: Grain deal talks in deadlock – UN

Russia, the world’s largest wheat exporter, has repeatedly demanded the US and EU lift sanctions that prevent the country from exporting its produce and fertilizers. Moscow’s demands include the reopening of an ammonia pipeline.

Officials from Ukraine, Russia, Türkiye and the UN are set to start negotiations in Istanbul this week, according to the Russian Foreign Ministry.

Meanwhile, Ukrainian exports via the Black Sea fell by more than a quarter in April compared to the previous month, according to UN data. Transit flows by road and rail to Eastern states of the EU have also dwindled to their lowest levels in at least 10 months, according to Ukrainian consulting firm UkrAgroConsult.

Find more stories on economy and finance in TROIB business