The US treasury undersecretary for terrorism and financial intelligence, Brian Nelson, will be visiting Kenya and Somalia to highlight support for Russian grain and fertilizer exports.
According to Reuters, the official aims to emphasize how Moscow’s withdrawal from the Black Sea grain pact will negatively impact African nations. Additionally, he will showcase the exemptions in US sanctions that allow the flow of food and agriculture transactions.
Russia recently ended the agreement that permitted Ukrainian grain exports across the Black Sea, citing unsatisfied requirements for improved exports of their own food and fertilizer. This move has led to a significant rise in global corn and wheat prices.
The Black Sea grain agreement, negotiated by the UN and Turkey a year ago, was meant to address a world food crisis worsened by Russia’s invasion of Ukraine in February 2022. Both Ukraine and Russia are major exporters of grains.
Somalia received an increased amount of wheat from Ukraine in 2022 due to heightened aid from donors to prevent an approaching famine. Although the rainy season this year has been better than expected, concerns remain about food access for 60 million people in seven East African nations.
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Despite not facing severe sanctions on Russian food and fertilizer exports, difficulties have arisen due to limitations on payments, logistics, and insurance. Over the past year, the US Treasury has issued general licenses to facilitate Russian exports of grain and fertilizer, and a special payments mechanism was developed by the UN for the Russian Agricultural Bank through JPMorgan Chase & Co.
African countries have generally refrained from commenting on the conflict in Ukraine, with most having stronger economic ties with the United States and Europe. Some African nations, like South Africa, received assistance from the Soviet Union during their independence efforts.
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In February this year during the United Nations General Assembly, the UN called for immediate end to war in Ukraine. East African countries that voted in favor of the UN include Kenya, DR Congo, Rwanda and South Sudan. Uganda and Burundi voted for abstention while Eritrea voted against the UN.
