Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious Outperformance
Find Stocks Now

Exclusive-Russia-Ukraine Black Sea shipping deal was almost reached last month, sources say

Published 04/15/2024, 02:39 PM
Updated 04/15/2024, 02:41 PM
© Reuters. FILE PHOTO: A serviceman of Ukraine's coast guard mans a gun on a patrol boat as a cargo ship passes by in the Black Sea, amid Russia’s attack on Ukraine, February 7, 2024. REUTERS/Thomas Peter/File Photo

By Guy Faulconbridge and Tuvan Gumrukcu

MOSCOW/ANKARA (Reuters) - Russia and Ukraine negotiated for two months with Turkey on a deal to ensure the safety of shipping in the Black Sea and reached agreement on a text that was to be announced by Ankara but Kyiv suddenly pulled out, four people familiar with the matter told Reuters.

The negotiations were mediated by Turkey after nudging by the United Nations, according to the sources who spoke to Reuters on condition of anonymity due to the sensitivity of such talks.

A deal was reached in March "to ensure the safety of merchant shipping in the Black Sea", and though Ukraine did not want to sign it formally, Kyiv gave its assent for Turkish President Tayyip Erdogan to announce it on March 30, the day before critical regional elections, the sources said.

"At the very last minute, Ukraine suddenly pulled out and the deal was scuttled," said one of the sources.

Three other people confirmed that version of events. Russia, Ukraine and Turkey declined to comment.

It was not immediately clear why Ukraine pulled out. The people who spoke to Reuters said they did not know what had prompted Kyiv's decision.

Ukrainian President Volodymyr Zelenskiy said in February that without new U.S. military aid, Ukraine would not be able to defend a Black Sea shipping corridor hugging its western Black Sea coast near Romania and Bulgaria.

The talks on the shipping deal, which have not been reported before, offer a glimpse of the quiet diplomacy going on behind closed doors on ways to bring the two warring sides to negotiation, if only, at first, about merchant shipping.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

When asked for a comment on the Reuters reporting, United Nations Spokesman Stephane Dujarric said: "We still hope that freedom of navigation in the Black Sea will prevail."

Turkey and UN Secretary-General Antonio Guterres have been trying to months to get merchant shipping sailing more freely though the Black Sea, which in some areas has been turned into a naval war zone since Russia invaded Ukraine in 2022.

The Black Sea is a key route for both Russia and Ukraine to get bulk products such as grain, fertiliser and oil to world markets, though sea shipping volumes have fallen significantly since the war.

RUSSIA-UKRAINE TALKS

The text of the deal, a copy of which Reuters has seen, said that Turkey "as part of its mediation efforts" had reached agreements with Ukraine and Russia "on ensuring free and safe navigation of merchant vessels in the Black Sea" in compliance with the Montreux Convention of the Regime of the Straits.

That 1936 deal gives Turkey control over the Bosphorus and Dardanelles and the power to regulate transit of naval warships.

It also guarantees the free passage of civilian vessels in peacetime and restricts the passage of ships not belonging to Black Sea countries.

Under the deal almost announced on March 30, both Moscow and Kyiv would have offered security guarantees to merchant vessels in the Black Sea, committing not to strike or to seize or search them as long as they were either empty or had declared a non-military cargo.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

"These guarantees do not apply to warships, civilian vessels carrying military goods (with the exception of maritime transportation agreed upon by the Parties within the framework of international missions)," the draft agreement said.

"The Republic of Turkey informs the UN Secretary General that the agreement has been reached and is being implemented through the mediation of the Republic of Turkey," the draft said. "The agreement comes into force upon announcement."

Turkey and the United Nations helped mediate the Black Sea Grain Initiative, a deal struck in July 2022 that had allowed the safe Black Sea export of nearly 33 million metric tons of Ukraine grain.

Russia withdrew from the agreement in July 2023, complaining that its own food and fertiliser exports faced serious obstacles.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.