Russia rejects Black Sea ceasefire proposals, putting 30 million tons of Ukrainian farm exports at risk

Ukraine was informed by countries facilitating negotiations that Moscow had rejected all proposals put forward by Kyiv's partners, Agriculture Minister Taras Vysotskyi told Bloomberg in an interview published on Sept. 28.

"Unfortunately, it's hard to imagine any possible solutions in the nearest months on this issue," Vysotskyi said. "We have to really prepare that the situation remains as critical as it is now."

He said all possible rounds of negotiations had been tried without producing results so far.

The failure to reach an agreement comes as Russian attacks on Ukrainian port infrastructure have sharply reduced Kyiv's ability to ship agricultural products through the Black Sea.

Ukraine has increased exports through alternative routes, which now handle about 45% of the volume the country needs to ship, according to Vysotskyi. However, Kyiv estimates those routes can handle no more than 50% of its agricultural exports.

As a result, around 30 million tons of agricultural products risk remaining in Ukraine during the current marketing year.

Ukraine and Russia together account for more than a quarter of global wheat shipments. Attacks on port infrastructure since July have disrupted supplies and pushed grain prices higher, while expectations that a limited ceasefire or moratorium could allow grain shipments through the Black Sea had helped ease prices in September.

Turkey has been among the countries trying to restore a Black Sea grain corridor. Turkish President Recep Tayyip Erdogan said last week that President Volodymyr Zelenskyy had responded positively to those efforts.

Zelenskyy has said Ukraine is ready to ensure the safety of shipping in the Black Sea if Russia takes reciprocal steps toward de-escalation.

Russian President Vladimir Putin said on Sept. 25 that proposals concerning Black Sea shipping remained on the table, but said Moscow would decide how to respond based on its own interests.

Ukraine has also sought additional EU support for its agricultural sector. Vysotskyi said the European Commission rejected Kyiv's request for €220 million ($250 million) in assistance for farmers and a mechanism to support their liquidity.

Ukraine is instead expected to receive a $250 million low-interest World Bank loan. Vysotskyi said the financing should allow the sector to "survive until the new year," but warned that Ukraine would have to find solutions for the period beginning next spring.