Trump’s promise to lift some sanctions on Russia has led to a drop in gas and fertilizer prices, and increased pressure on agricultural prices

On March 25, a new round of negotiations between delegations from Ukraine, the United States, and Russia took place in Saudi Arabia.

Representatives of the United States and Russia agreed to ensure safe navigation, eliminate the use of force, and prevent the use of commercial vessels for military purposes in the Black Sea, which Ukraine also agreed to. All parties also agreed to develop measures to implement the agreement on the prohibition of strikes on energy facilities of Ukraine and Russia.

President Trump promised to “restore Russia’s access to the world market for agricultural and fertilizer exports, reduce marine insurance costs, and improve access to ports and payment systems for such transactions.” This news lowered gas and fertilizer prices in the EU, as Russia was already exporting its agricultural products without any major problems.

To achieve a ceasefire in the Black Sea, the Russian Federation has put forward a number of demands: lifting sanctions on Rosselkhozbank and other banks involved in the export of fertilizers and food, on companies that produce and export fertilizers and food, as well as on companies that insure vessels with relevant cargoes, permission to service such vessels in ports, and supplies to the Russian Federation of equipment and goods needed for the production of food and fertilizers.

The world assessed the results of the negotiations as a failure of the United States. Thus, British financier Bill Browder, in a commentary on Sky News, stated that the aggressor received concessions for his impudence in the form of easing of sanctions, and will now be able to continue the terror. “Russian refineries have been saved, and Ukrainian cities will continue to be bombed. At the same time, I am sure that  Russia will continue to strike Ukrainian civilian objects, having received protection for its oil refineries, which are the basis for financing the war. The lifting of part of the sanctions on Russia cannot be considered an appropriate response to a country that has killed thousands of people and caused trillions of dollars in damage, so there is nothing to celebrate here,” Browder concluded.

The Telegraph called the negotiations between the US and Russia a procedural quagmire, not a diplomatic breakthrough.

Politico believes that during negotiations with Russia, Trump gave Putin seven trump cards: calls to Putin, negotiations with Russia without Ukraine, demands for concessions from Ukraine and pressure on it, postponing talks about security guarantees and NATO for Ukraine, the absence of talks about Russia’s responsibility for the aggression, and blaming “both sides” for the war.

In an article for the Center for European Policy Analysis (CEPA), O’Sullivan notes that since February 2022, the Russian Federation has lost more than $450 billion in revenue due to sanctions, which corresponds to the Russian Federation’s military spending for three years of war.

At the same time, the Russian Interfax reports that “the United States will help Russia restore access to fertilizers and agricultural products to the world market and will contribute to reducing the cost of marine insurance, expanding access to ports and payment systems for transactions related to fertilizers and agricultural products.”

It is worth noting that the US, without the EU and the UK, will not be able to quickly lift sanctions on the Russian Federation, so their position on the Russian Federation will be very important, and we hope that it will coincide with Ukraine’s position.

Tags: Ukraine, Russia, USA, fertilizers, Black Sea grain deal