- Putin accuses Kyiv and the West of misunderstanding the grain deal
- Says wants to discuss changing the terms of the deal
- Threatens to cut energy exports if Europe caps prices
KYIV, Sept 7 (Reuters) – President Vladimir Putin said on Wednesday he wanted to discuss reopening a UN-brokered deal allowing Ukraine to export its grain through the Black Sea and threatened to halt all supplies of energy in Europe if Brussels limits the price of Russian gas.
In a combative speech to an economic forum in the Russian Far East region, Putin made little reference to his invasion of Ukraine, but said in response to a question that Russia would not lose the war and had strengthened its sovereignty and influence.
On the ground, Ukrainian officials remained tight-lipped about how a counteroffensive they launched late last month was going, but an official stationed by Russia in eastern Ukraine said Ukrainian forces had struck a city there
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The grain pact, facilitated by the United Nations and Turkey, created a protected export corridor across the Black Sea for Ukrainian food after Kyiv lost access to its main export route when Russia attacked Ukraine by land, air and sea.
Designed to help reduce global food prices by increasing supplies of grains and oilseeds, the deal has been the only diplomatic breakthrough between Moscow and Kyiv in more than six months of war.
But Putin said the deal was delivering grain, fertilizer and other food to the European Union and Turkey instead of the poor countries whose interests, he said, were the pretext for the deal, adding that he wanted discuss changing its terms.
“Maybe it’s worth considering how to limit the export of grain and other food along this route,” he said, adding that Russia will continue to abide by its terms in the hope that it will meet its original goals.
“I will definitely consult the President of Turkey, Mr. (Tayyip) Erdogan on this matter because it was he and I who worked out a mechanism for the export of Ukrainian grain in the first place, I repeat, to help the poorest. countries”.
His comments raised the possibility that the pact could be undone if it cannot be successfully renegotiated or if Moscow does not renew it when it expires at the end of November.
Ukraine, whose ports had been blockaded by Russia after its invasion in February, said the terms of the agreement, which was signed on July 22 for a period of four months, were being strictly observed and there was no reason to renegotiate it.
“I believe that these unexpected and baseless statements rather indicate an attempt to find new aggressive talking points to influence world public opinion and, above all, put pressure on the United Nations,” said Mykhailo Podolyak, a presidential adviser. Read more
The deal threw a lifeline into Kyiv, giving a much-needed source of revenue to a war-torn economy. It says nothing about which countries Ukrainian grain should go to, and the United Nations has stressed that it is a commercial, not a humanitarian, operation that will be market-driven.
According to data from the Istanbul-based coordination group that oversees the implementation of the agreement, 30 percent of total cargo, including that destined for or routed to Turkey, had gone to low- and lower-middle-income countries.
GRAIN AND GAS
Ukraine hopes to export 60 million tons of grain in eight to nine months, presidential economic adviser Oleh Ustenko said in July, warning that those exports could take up to 24 months if ports do not function properly.
Putin complained that another part of the deal aimed at easing restrictions on Russian food exporters and shippers was also not being implemented.
Russian Foreign Minister Sergei Lavrov also cast doubt on the deal a day earlier, accusing Western states at the United Nations of failing to honor reciprocal promises to help facilitate shipments from Moscow. Read more
Russia’s grain exports in August are expected to be 28% lower than in the same period last year, according to a forecast by Russian consultancy Sovecon.
The other major global fallout from Russia’s invasion of Ukraine has been rising energy prices, as the West responded with sanctions and Moscow restricted gas exports to Europe, blaming Western restrictions and technical problems
As the European Union prepared to propose a price cap on Russian gas to try to contain an energy crisis that threatens widespread hardship this winter, Putin threatened to halt all supplies if he took the step.
“Will there be political decisions that contradict the contracts? Yes, we simply will not fulfill them. We will not supply anything if it contradicts our interests,” Putin said.
“We will not supply gas, oil, coal, heating oil, we will not supply anything,” Putin said.
Europe usually imports about 40% of its gas and 30% of its oil from Russia.
SUCCESS ON THE UKRAINE BATTLEFIELD?
Asked by a moderator at the Vladivostok economic forum about what Russia calls its “special military operation” in Ukraine, Putin said:
“We have lost nothing and will not lose anything… As for what we have gained, I can say that the main gain has been the strengthening of our sovereignty.”
The governor of eastern Ukraine’s Luhansk region, which Russia has said has taken over on behalf of separatist representatives, told Ukrainian television on Tuesday that Ukraine was fighting back.
A “counterattack is underway and … our forces are enjoying some success. Let’s leave it at that,” Serhiy Gaidai said on Tuesday, without giving locations.
An official in the self-proclaimed pro-Moscow Donetsk People’s Republic said on Tuesday there was fighting in Balakliia, an eastern town of 27,000 between Kharkiv and Russian-held Izyum, site of a major railway hub used by Moscow to supply their forces.
“Today, the Ukrainian armed forces, after a long artillery preparation… began an attack on Balakliia…” Daniil Bezsonov said on Telegram, adding that if the city was lost, the forces Russians at Izyum would become vulnerable on their northwestern flank.
Russia says it has repelled an assault in the south and has reported no territorial losses.
Russia’s defense ministry said its forces had taken Kodema in eastern Ukraine’s Donetsk region from Ukrainian forces. The village of about 600 people is claimed by the Russian-backed Donetsk People’s Republic as part of its territory.
Reuters could not independently verify accounts from the battlefield.
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Reuters report; Written by Andrew Osborn; Editing by Philippa Fletcher
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