What is Black Sea Grain Initiative?
The Black Sea Grain deal endeavours to tackle escalating food prices emanating from supply chain disruptions because of Russia’s actions in the world’s ‘breadbasket’.
The deal, brokered by the UN and Turkey, was signed in Istanbul on July 22, 2022.
Initially stipulated for a period of 120 days, with an option to extend or terminate after November, the deal was to provide for a safe maritime humanitarian corridor for Ukrainian exports (particularly for food grains) from three of its key ports, namely, Chornomorsk, Odesa and Yuzhny/Pivdennyi.
The central idea was to calm markets by ensuring an adequate supply of grains, thereby limiting food price inflation.
Ukraine is among the largest exporters of wheat, maize, rapeseed, sunflower seeds and sunflower oil, globally.
Its access to the deep-sea ports in the Black Sea enables it to directly approach Russia and Europe along with grain importers from West Asia and North Africa.
Russia’s actions in the East European country had disturbed this route which earlier used to ship 75% of its agricultural exports — precisely what the initiative sought to address.
Role of Joint Coordination Centre (JCC)
The deal put in place a Joint Coordination Centre (JCC), comprising senior representatives from Russia, Turkey, Ukraine and the UN for oversight and coordination.
All commercial ships are required to register directly with the JCC to ensure appropriate monitoring, inspection and safe passage. Inbound and outbound ships (to the designated corridor) transit as per a schedule accorded by the JCC post-inspection.
This is done so as to ensure there is no unauthorised cargo or personnel onboard.
Allowed to sail onwards to Ukrainian ports for loading through the designated corridor.
Main Goals
The main goals of the Shanghai Cooperation Organisation (SCO) include strengthening mutual trust and neighborliness among member states.
The SCO aims to promote effective cooperation in various areas such as politics, trade, economy, research and technology, and culture.
Maintaining peace, security, and stability in the region is another key objective of the SCO.
The organization strives to contribute to the establishment of a democratic, fair, and rational new international political and economic order.
The SCO's aspiration for a new international order has raised concerns among the U.S. and Europe, leading to it being labeled as "anti-NATO" due to proposals for military cooperation.
Heightened concerns emerged when Russia faced heavy sanctions for its actions in Crimea, and China supported Russia by signing a significant gas pipeline agreement worth $400 billion.
The personal bond between Russian President Vladimir Putin and Chinese President Xi Jinping has facilitated Eurasian cooperation within the SCO, particularly in the energy-rich region.
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