The UN said that the agreement on grain will reduce the transaction costs of Russian exports
Rebeca Greenspan, Secretary General of the United Nations Conference on Trade and Development (UNCTAD), spoke about the benefits of the grain export agreement for Russia. According to her, the deal will reduce transaction costs in the export of food and fertilizer from the country. RIA News.
“Because there are shipping issues, insurance issues, payment issues, freight issues, all of which are driving prices up in the world. So the main thing I foresee is that these barriers will soften and the price of transactions will decrease,” Greenspan said.
UNCTAD estimates that half of the increase in grain prices is due to transport and logistics. Accordingly, now “trade flows will improve and prices will decrease,” the secretary general concluded. After the signing of the “product deal”, the UN will establish a working group that will continue to promote the development of trade.
Representatives of Russia, Ukraine, Turkey and the UN signed an agreement on the export of Ukrainian grain through the Black Sea on July 22 during a ceremony in Istanbul. The event was also attended by UN Secretary General António Guterres and Turkish President Recep Tayyip Erdogan. The deal lifted restrictions on the supply of Russian agricultural products to the world market and determined the algorithm for the export of Ukrainian grain through the Black Sea.
Grain from Ukraine will be exported from three ports – Odessa, Chernomorsk and Yuzhny – along safe corridors. Vessels will be searched for weapons, warships and aircraft will not be able to approach them without permission. A special Joint Coordinating Center will be set up in Istanbul to control the process. The agreement is valid for 120 days.
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