The Grain Deal in Istanbul: Hopes and Expectations

Grain fields backdropped by a power plant in Donetsk region, eastern Ukraine, Friday, July 22, 2022. (AP)
Grain fields backdropped by a power plant in Donetsk region, eastern Ukraine, Friday, July 22, 2022. (AP)
TT

The Grain Deal in Istanbul: Hopes and Expectations

Grain fields backdropped by a power plant in Donetsk region, eastern Ukraine, Friday, July 22, 2022. (AP)
Grain fields backdropped by a power plant in Donetsk region, eastern Ukraine, Friday, July 22, 2022. (AP)

A deal has been reached to allow grain from Ukraine to be exported unhindered through what is called a safe corridor in the Black Sea. If this agreement can be implemented, 20-25 million tons of Ukrainian grain will not rot in silos and will be shipped to their destinations.

The signing ceremony took place in Istanbul with United Nations Secretary-General Antonio Guterres and President Recep Tayyib Erdogan of Turkey as host and facilitator. Present were, representatives from Ukraine (Minister of Infrastructure), Russia (Minister of Defense) and Turkey (Minister of Defense).

A couple of notes about the signing ceremony: The Russians and Ukrainians signed different texts (with the UN and Turkey) and not with each other. There are two separate, but complementing agreements.

There was no press conference after the signing ceremony. The message was that this is a unique arrangement to overcome a food crisis, which is a humanitarian issue. Apart from that, the two sides do not want to talk to each other and the war continues.

According to this arrangement, which will be valid for an initial period of four months (that will be extended automatically unless there is objection from either side), a “joint coordination center” and a joint committee responsible for implementation will be set up in Istanbul.

Odessa, Chornomorsk and Yuzhne will be the Ukrainian ports where grain will be loaded.

There will be one safe corridor so as not to complicate matters.

Ukraine will be responsible to guide grain ships through mines, which it has laid outside the ports against Russians. There will be no naval mine removal operation.

Russia will refrain from military action in the area while ships are on the move.

There will be an inspection mechanism whereby outbound (from Ukrainian ports) and returning ships will be inspected for any possibility of shipments other than grain as there is a major Russian concern that ships on their way back could be bringing weapons. Russia will be able to export fertilizers.

The implementation of the deal will be effective as soon as possible, hopefully in a couple of weeks. Operational procedures will have to be finalized first.

Technical level delegations from Ukraine, Russia, Turkey and the United Nations have met several times and were able to come up with an arrangement. It must have been a very difficult exercise.

I assume that any remaining problems were dealt with in Tehran three days ago at the highest level when Presidents Erdogan and Vladimir Putin met.

One question that comes to mind is whether the agreement on the safe corridor was a part of a package including maybe Syria-related issues, sanctions against Russia and gas exports.

The Istanbul agreement came at a time when Turkey has been blamed for the shelling and killing of civilians in Zaho in the Duhok province in the administrative boundaries of the boundaries of the Kurdistan region of Iraq on July 20.

The Turkish Foreign Ministry issued a statement rejecting the accusations and blaming the attack on the terrorist Kurdistan Workers' Party (PKK). Turkey stated its readiness to take necessary steps to dig for the truth and invited the Iraqi government to conduct a joint investigation. Iraqi Prime Minister Mustafa al Kadhimi had harsh words for Turkey. Nechirvan Barzani, President of the region, also condemned the attack but stood short of pinning the blame on Turkey.

Back to Istanbul on Friday, even the news that a deal could be signed led to a two percent fall in wheat prices. Governments of developing and underdeveloped countries in need of grain to feed their populations must be much more hopeful for the future, following the signing of the agreement.

It should be noted that despite the signing, all countries involved and affected in one way or another by the war in Ukraine, continue to work on alternatives, such as improvements of certain border crossings, roads, railways and ports in Moldova and Romania.

The other major problem which the war in Ukraine has caused is energy security. Russia has been using its natural gas resources to retaliate against sanctions.

Europe receives around 40 percent of its gas from Russia and the major importer of Russian gas in the continent is Germany. Ten days ago, Russia stopped gas transactions through Nord Stream 1 pipeline due to maintenance work. Now, the pipeline has become operational once again but at a reduced level.

Winter is coming and the EU is trying hard to diversify its sources. European countries have been called upon by EU officials to cut off, by a certain percentage, their use of gas.

Despite the deal in Istanbul, it seems that we are still in for an extended war in Ukraine.

With all sanctions and limitations, Russia is faced with draining of its resources but it still seems able to keep things running for quite some time more.

Against Russia’s aggression, Ukraine is determined to fight on and does not have the intention to give up its territories. Counter offensives are taking place and arms from the West keep coming in.

What about public opinion?

In Russia, objections to government policies usually end up at the tip of a police baton and in jail. On the other hand, even though police batons can also come into play, the western public opinion has a say on matters and can influence the policies of their government.

As an anecdote, a former Turkish diplomat, who knows Russia well, said: “Russians, other than those living in Moscow, St Petersburg and maybe a few more cities, are living their normal lives as if they are under sanctions. Therefore, I am not sure if they are even aware that they are under sanctions because of the invasion of Ukraine”.

The Istanbul agreement is a much-needed diplomatic success for Turkey, which is now in a position to argue that keeping talking terms with Russia has enabled this outcome.

The grain deal is the first agreement where Ukrainian and Russian negotiators sat around the same table since the start of the war. If this agreement could be reached, why not others?

But we need to bear in mind that territorial and other issues would most probably be much more complicated than grain issues.

Signing the grain corridor deal is a major achievement but it is not the end. The two sides distrust each other and dynamics of the war are in play. Ukraine and Russia are both concerned that the other side may use the arrangement to serve military purposes.

What needs to be seen is the implementation of the arrangement. On a last note, what was achieved in Istanbul is important but fragile.



US Launches ‘Economic Onslaught’ Against Iran’s Financial Connections

WASHINGTON, DC - AUGUST 24: US Treasury Secretary Scott Bessent announces a new set of sanctions against Iran in the Cash Room at the Treasury Department on August 24, 2026 in Washington, DC. Chip Somodevilla/Getty Images/AFP
WASHINGTON, DC - AUGUST 24: US Treasury Secretary Scott Bessent announces a new set of sanctions against Iran in the Cash Room at the Treasury Department on August 24, 2026 in Washington, DC. Chip Somodevilla/Getty Images/AFP
TT

US Launches ‘Economic Onslaught’ Against Iran’s Financial Connections

WASHINGTON, DC - AUGUST 24: US Treasury Secretary Scott Bessent announces a new set of sanctions against Iran in the Cash Room at the Treasury Department on August 24, 2026 in Washington, DC. Chip Somodevilla/Getty Images/AFP
WASHINGTON, DC - AUGUST 24: US Treasury Secretary Scott Bessent announces a new set of sanctions against Iran in the Cash Room at the Treasury Department on August 24, 2026 in Washington, DC. Chip Somodevilla/Getty Images/AFP

US Treasury Secretary Scott Bessent unveiled Monday what he described as an "economic D-Day" that aims to give a final warning to countries to sever their business ties with Iran or risk having key companies and entities cut off from the dollar-based financial system.

"We are launching an economic onslaught against Iran’s financial connections around ⁠the globe. Our ⁠objective is to sever every economic lifeline that sustains this tyrannical regime until Tehran stands alone," Bessent said.

He added that it’s “no longer acceptable to operate in the gray spaces” of the conflict.

He did not name what countries could face potential secondary sanctions from the United States.

“Let there be no ambiguity as to the position of the United States,” Bessent told a news conference. “An economic engagement of any kind with this murderous regime will expose those responsible to the full reach of American power.”

The US Treasury Department has mapped the networks, facilitators, and financial channels that Iran uses to smuggle oil and evade sanctions and said that Washington would be working with US partners to target any source of Iran's "illicit revenue."

The department said it has issued determinations against five sectors -- digital assets, technology, gold, ⁠aviation and shipping -- that the Iranian government is using to prop up its economy. The Treasury has also imposed sanctions on nearly 60 entities, individuals and vessels.

US President Donald Trump's war with Iran, which has pushed energy prices higher worldwide, is about to hit its six-month mark. While heavy fighting has ‌subsided, diplomatic efforts to end the war have stalled and oil and raw material shipping through the Strait of Hormuz ⁠remains blocked, ⁠keeping energy prices elevated.


Trump Says Iran 'Collapsing' Ahead of Sanctions Announcement

Motorcyclists pass a billboard depicting US President Donald Trump with hands around his neck beneath the words "Revenge is inevitable" in Tehran, Iran, Monday, Aug. 24, 2026. (AP Photo/Vahid Salemi)
Motorcyclists pass a billboard depicting US President Donald Trump with hands around his neck beneath the words "Revenge is inevitable" in Tehran, Iran, Monday, Aug. 24, 2026. (AP Photo/Vahid Salemi)
TT

Trump Says Iran 'Collapsing' Ahead of Sanctions Announcement

Motorcyclists pass a billboard depicting US President Donald Trump with hands around his neck beneath the words "Revenge is inevitable" in Tehran, Iran, Monday, Aug. 24, 2026. (AP Photo/Vahid Salemi)
Motorcyclists pass a billboard depicting US President Donald Trump with hands around his neck beneath the words "Revenge is inevitable" in Tehran, Iran, Monday, Aug. 24, 2026. (AP Photo/Vahid Salemi)

President Donald Trump said Monday that Iran is "collapsing" hours before the US government was set to announce details of what it says will be crushing sanctions against Tehran.

"IRAN IS COMPLETELY COLLAPSING!!!" Trump posted in his trademark all-caps style on his social media platform Truth Social.

“President Trump decimated Iran’s economy to a point where the rial has never been weaker and inflation has rarely been higher,” US Treasury Secretary Scott Bessent wrote Sunday in an opinion piece in the Financial Times.

“The regime’s final refuge now lies in the self-deception of fearful nations that still believe accommodating aggression can secure a durable peace.”


Health of Norway's King Deteriorated but he is Stable Now

(FILES) Norway's King Harald gives a speech at the gala dinner at the Castle in Oslo on April 8, 2025 during the state visit of Iceland's President Halla Tomasdottir and her husband Bjorn Skulason. (Photo by Fredrik Varfjell / NTB / AFP)
(FILES) Norway's King Harald gives a speech at the gala dinner at the Castle in Oslo on April 8, 2025 during the state visit of Iceland's President Halla Tomasdottir and her husband Bjorn Skulason. (Photo by Fredrik Varfjell / NTB / AFP)
TT

Health of Norway's King Deteriorated but he is Stable Now

(FILES) Norway's King Harald gives a speech at the gala dinner at the Castle in Oslo on April 8, 2025 during the state visit of Iceland's President Halla Tomasdottir and her husband Bjorn Skulason. (Photo by Fredrik Varfjell / NTB / AFP)
(FILES) Norway's King Harald gives a speech at the gala dinner at the Castle in Oslo on April 8, 2025 during the state visit of Iceland's President Halla Tomasdottir and her husband Bjorn Skulason. (Photo by Fredrik Varfjell / NTB / AFP)

Crown Prince Haakon visited his father King Harald of Norway on Monday at the hospital, after the king's health deteriorated over the weekend, public broadcaster NRK reported.

The 89-year-old monarch, who has been on sick leave for several weeks, was admitted to the National Hospital a week ago. He is now receiving antibiotics for a bacterial blood infection and has responded to treatment, the royal palace said late Sunday, adding that his condition is stable.

Haakon, has been serving as regent during that time, The Associated Press quoted the palace as saying.

The king has hemolytic anemia and was being treated with cortisone, leading to fluid accumulation in the body that required hospital treatment, the palace said last week.

Norway's prime minister sent his wishes for the king and said that “all of Norway is following and thinking about the king,” NRK reported.

“My strong wish is that he continues to receive good treatment from the good healthcare system we have,” Prime Minister Jonas Gahr Støre said.

Harald, who has been monarch since 1991, has been in and out of the hospital several times in recent years.

In February, he was admitted to a hospital in Spain’s Canary Islands during a winter vacation for treatment for a skin infection.

Two years ago, the king fell ill during a private vacation with the queen in Malaysia and received a temporary pacemaker there. Harald returned aboard a medical airplane to Norway, where he was fitted with a permanent pacemaker.