Putin says Russia may ship for free to replace Ukrainian grain

MOSCOW/U.N., Jul 20 (PRIME) -- Russia is ready to continue grain supplies to the global market replacing Ukraine, including free of charge, President Vladimir Putin told the government late on Wednesday.

"I can assure you that this country is capable of replacing Ukrainian grain both on the commercial basis and free of charge. Besides, as the minister said, we expect a record harvest again this year," Putin said.

He said that Russia would consider returning to the grain deal if all principles of participation are taken into account and all terms fulfilled -- the country needs immediate connection of Russian Agricultural Bank to the SWIFT messaging system rather than promises or ideas.

He estimated losses of Russian farmers from a grain price decline, the increase of the freight fee and international settlements prices at U.S. $1.2 billion and losses of fertilizer producers at $1.6 billion as a result of the deal.

U.N. Secretary General Antonio Guterres will try to ensure that Ukraine and Russia export food and fertilizers regardless of the existence of a memorandum of understanding between Russia and the U.N., spokesman for the official Stephane Dujarric said.

"I think what’s important to say is that with or without these 90 days or memorandum of understanding, the Secretary-General will continue whatever he can do to ensure that the global markets have access to Ukrainian and Russian food as well as fertilizer," Dujarric said.

Russia sent an objection against an automatic rollover on Monday and stopped implementing the Black Sea Grain Initiative on Tuesday, but promised a return when its conditions are met. The agreement is to expire in three months after a rollover objection letter.

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