💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Russia and Ukraine say ammonia pipeline was damaged, in potential blow to grain deal

Published 06/07/2023, 12:33 PM
Updated 06/07/2023, 01:19 PM
© Reuters. FILE PHOTO: Commercial vessels including vessels which are part of Black Sea grain deal wait to pass the Bosphorus strait off the shores of Yenikapi during a misty morning in Istanbul, Turkey, October 31, 2022. REUTERS/Umit Bektas//File Photo

(Reuters) -A pipeline used to transport ammonia fertilizer from Russia via Ukraine that may be central to the future of the Black Sea grain deal has been damaged, according to both Kyiv and Moscow, potentially complicating talks around the accord.

Russia's defence ministry said a "Ukrainian sabotage group" had blown up a section of the pipeline on Monday night near the village of Masyutivka in Kharkiv region. The village is on the frontline between Russian and Ukrainian troops.

"As a result of this terrorist act, there were civilian casualties. They have been provided with necessary medical assistance," the Russian ministry said in a statement.

"At present ammonia residues are being blown out of the damaged sections of the pipeline from Ukrainian territory. There are no casualties among Russian servicemen."

Oleh Sinehubov, the governor of Ukraine's Kharkiv region gave a different version of events. He said in a statement posted on Telegram that Russian troops had shelled the pipeline.

Six Russian shells had landed near a pumping station near Masyutivka at around 5:45 p.m. (1445 GMT) on Tuesday, nearly 24 hours after Moscow alleged Ukraine had blown up the same pipeline, he said.

Reuters could not independently verify the Russian and Ukrainian assertions.

The Russian section of the pipeline is safe and under control, Russian agencies reported, citing the operating company.

"The Russian part of the ammonia pipeline, which belongs to Transammiak, is securely cut off from the Ukrainian part and is in a safe and serviceable condition under constant control," the Interfax news agency cited the company's press office as saying.

REPAIRS

Resumption of supplies via the Tolyatti-Odesa pipeline, the world's longest ammonia pipeline, may be key to the renewal of the Black Sea grain export deal. The pipeline has been closed since Russia invaded Ukraine in February 2022 in what it called a "special military operation".

Russia has repeatedly cast doubt on whether it will continue to renew the grain deal, brokered by the United Nations and Turkey, which facilitates agricultural exports from Ukraine via the Black Sea.

Among the conditions for renewal that Moscow has put forward is resumption of the Togliatti-Odesa pipeline.

The United Nations has not received any official notification about damage to the pipeline, U.N. spokesperson Stephane Dujarric said on Wednesday.

"Any threat to this pipeline is indeed of concern," Dujarric told reporters. "We're continuing to engage with the parties on the ammonia exports, regardless of what may have happened."

Moscow has said it will limit the number of ships allowed to travel to Ukraine's Pivdennyi port near Odesa under the deal until the pipeline is restarted.

© Reuters. FILE PHOTO: Commercial vessels including vessels which are part of Black Sea grain deal wait to pass the Bosphorus strait off the shores of Yenikapi during a misty morning in Istanbul, Turkey, October 31, 2022. REUTERS/Umit Bektas//File Photo

In a briefing on Wednesday, Russian Foreign Ministry spokeswoman Maria Zakharova said it would take between one and three months to repair the damaged section of the pipeline.

"The ammonia pipeline was one of the linchpins of the implementation of the agreements made in Istanbul on July 22, The (pipeline) was key to global food security," Zakharova said.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.