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Government Prolongs Grain Reserve

Last updated on 20th July 2023

The Regional Secretary for the Economy of Madeira, Rui Barreto, admitted that the region’s cereal reserve period is to be extended following Russia’s suspension of the agreement to export cereals through the Black Sea from Ukrainian ports.

The Regional Government of Madeira last year established a contract with the company Silomad, for the creation of a grain reserve which would last one year.

Today, speaking to journalists, Rui Barreto assured that the PSD / CDS-PP is aware of the situation and admitted that he may renew the contract, which ends in September, and maintain the grain reserve.

“The contract is in place until the third quarter of this year and we are working in the face of recent news that Russia may not make the grain deal, and therefore we will need to maintain a strategic grain reserve.”

The Regional Secretary for the Economy (CDS-PP) stressed that “a trade war is taking place in the world and there are many geopolitical interests at stake that are disrupting the normal functioning of the economy and international trade.”

“That is why, when there are sanctions, when there are blockades, when there are attempts to damage silos and harm the export of cereals, this translates into instability of the markets,” he added, stressing that the Government of Madeira is working to minimise their effects.

On Monday, Russia suspended the agreement to export grain across the Black Sea from Ukrainian ports, arguing that commitments made to the Russian side had not been fulfilled.

“When the Russia-related part of the Black Sea agreement is fulfilled, Russia will immediately return to the implementation of the agreement,” Kremlin spokesman Dmitri Peskov said, further stating that the attack on a bridge linking Crimea to the Russian mainland was not a factor in the decision to suspend the deal.

The groundbreaking deal with the United Nations and Turkey negotiated last summer allowed tonnes of grain and other foodstuffs to leave the Black Sea region after Russia invaded Ukraine on the 24th of February 2022.

Samantha Gannon

Info at madeira-weekly.com

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