The increase in the cost of passage of merchant ships through the Bosphorus will complicate the export of grain from Russia

Turkey’s increase in the cost of passage of merchant ships through the Bosporus and Dardanelles will complicate the export of Russian grain, declared Chairman of the Board of the Union of Grain Exporters Eduard Zernin to Interfax.

According to him, exports are already limited by hidden sanctions, and Turkey made this decision at the “most inopportune moment”, since Ukrainian grain was released to the market at a discount, and the terms of the “grain deal”, which provided for the lifting of hidden sanctions on Russian grain, so and have not been fulfilled.

“The increase in the cost of passage of ships through the Bosphorus since October 7, of course, creates an additional negative background for the export of Russian grain. First, the deal on the “grain corridor” released Ukrainian grain to the world market at a significant discount, which contributed to a decrease in export prices for Russian grain, now the rise in prices will lead to an increase in freight rates and the cost of exporting Russian grain,” Zernin said. According to him, there is no talk of closing this export route, but a “negative signal” has been received.

Turkish newspaper Sabah earlier in the day reportedthat the country will use its right granted to it by the Montreux Convention and increase the cost for the passage of merchant ships through the straits. The amount of the payment was adopted in 1983 – then a 75% discount was applied to the price of the franc, and 1 franc was set at $0.8 – and has not changed since then. When calculating the new transit cost, the price of the franc was increased five times to $4 per ton. The decree will come into force on October 7, 2022 and will allow Turkey to increase revenues from $40 million to $200 million.

On July 22, representatives of Turkey and the UN signed separate agreements with representatives of Russia and Ukraine on the export of Ukrainian grain, as well as on assistance in the export of Russian grain and fertilizers. On July 27, the Joint Coordination Center for the export of grain began its work in Istanbul. Within the framework of the agreement on grain, it was also supposed to remove restrictions on the export of Russian food and fertilizers.

Turkish Defense Minister Hulusi Akar on the air of the local TV channel A Haber on August 26 informedthat 800,000 tons of food were exported from the ports of Ukraine as part of the “grain deal”.