UN: No guarantees that parties to abide by Istanbul agreement terms

The UN Conference on Trade and Development (UNCTAD) Secretary General Rebeca Grynspan has said that the agreement on Ukrainian grain is an act of confidence building.

According to Kommersant, she said that there were no guarantees that the parties would not impede the transportation of agricultural products. She added the Istanbul agreement would help reduce "transaction costs," relieving food tensions and stopping price increases.

"Oh no, it [the agreement adopted in Istanbul] is a confidence-building act. There are no guarantees, only efforts of goodwill and the commitment of all parties to make this scheme work," Grynspan told reporters.

She noted that the agreement adopted in Istanbul would ease obstacles to delivery, insurance, and payment of goods, so the price of transactions would fall. According to UNCTAD, half of the rise in grain prices is due to the price of transportation and logistics.

An agreement on the transportation of agricultural products blocked in Ukrainian ports was signed in Istanbul by Russia, Ukraine, Türkiye, and the United Nations on July 22. It involves the creation of a Joint Coordination Center (JCC), which will ensure the safe transportation of ships from three ports on the Black Sea - Odesa, Chernomorsk, and Yuzhne. Kyiv stated that the agreement is valid for 120 days from the date of its signing and can be extended for the same period.