Supply problems of grain due to slow inspections of ships between Turkey and Ukraine are causing concern in the market.

Despite the continuation of the grain deal, many ships are unable to reach Ukraine from Turkey. The speed of food deliveries is unlikely to increase due to slow inspections and other uncertainties.

According to Kpler analysts, currently there are almost 40 dry cargo ships near Istanbul in areas where inspections by representatives of Russia, Ukraine, Turkey, and the UN are taking place. Approximately 75% of them were previously used in the grain corridor.

"Other vessels are likely waiting outside these zones or on their way to them," said Kpler analyst Alexis Ellender. He mentioned that 35% of shipments through the corridor go to the Ukrainian port of Yuzhny, and until vessel traffic is restored there, "trade will not be able to return to previous levels."

A representative of the UN Secretary-General, Stephane Dujarric, spoke out about preventing ship movements to Yuzhny. Earlier, Ukraine's Deputy Minister of Infrastructure, Yuri Vas'kov, reported that Russian inspectors refuse to inspect ships heading to this port, and the US State Department accused Russia of a clear violation of the agreement's obligations.

The Russian side has not yet commented on these accusations. On May 25, the country's Foreign Ministry stated that "Ukrainian food continues to be successfully exported, and Russian ammonia from the port of Yuzhny is not being delivered." The department also warned that if Moscow's conditions are not met (connecting Rosselkhozbank to SWIFT, unblocking agricultural exports from Russia, etc.), alternative options for the grain deal will have to be sought.

In addition to Yuzhny, the ports of Odesa and Chornomorsk are involved in the grain deal. Ukraine has repeatedly called for an increase in the number of ports and expansion of the list of exported goods. The Russian Foreign Ministry disagreed with this. The department previously identified "systemic problems" with the agreement that need to be addressed, including the restoration of agricultural machinery supplies to Russia and the unblocking of foreign assets of Russian companies related to production.

Russia and Ukraine separately concluded the grain deal with Turkey and the UN last July, and it has been extended several times. In mid-May 2023, the parties were able to extend the agreement for another two months - until July 17. The Foreign Ministry called for the "inequalities" in deal implementation to be corrected as quickly as possible.