G7 calls for extension, full implementation and expansion of Black Sea grain deal 

Grain sales are a vital revenue source for Kyiv, and food import bans imposed by four EU member states in Eastern Europe have increased Ukraine's concerns about its food exports. (Shutterstock)
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Updated 23 April 2023
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G7 calls for extension, full implementation and expansion of Black Sea grain deal 

RIYADH: The Group of Seven economic powers called on Sunday for the "extension, full implementation and expansion" of a critical deal to export Ukrainian grain through the Black Sea, the group's agriculture ministers said in a communique. 

Brokered by the UN and Turkey, the deal was signed in Istanbul last July, allowing Ukraine to export more than 27 million tons of grain from several of its Black Sea ports. 

Russia, which invaded its neighbor in February 2022, has strongly signaled that it will not allow the deal to continue beyond May 18 because a list of demands to facilitate its own grain and fertilizer exports has not been met. 

In the communique after a two-day meeting in Miyazaki, Japan, the G7 agriculture ministers "recognized the importance" of the deal, saying: "We strongly support the extension, full implementation and expansion of (the Black Sea Grain Initiative) BSGI." 

G7 members "stand ready" to support recovery and reconstruction of Ukraine, including by providing expertise in de-mining of agricultural land and reconstruction of agricultural infrastructure, the document said. 

Russian Foreign Minister Sergei Lavrov is scheduled to discuss the Ukraine Black Sea grain export deal with UN Secretary-General Antonio Guterres in New York this week. 

Meanwhile, Ukraine's prospects of unblocking grain shipments to Eastern Europe improved last Friday as Romania opted against a unilateral ban on food imports, but there was no progress on extending a deal on Black Sea exports. 

Grain sales are a vital revenue source for Kyiv, and food import bans imposed by four EU member states in Eastern Europe have increased Ukraine's concerns about its food exports. 

Offering Kyiv some relief, Romania said it would not join Bulgaria, Hungary, Poland and Slovakia in banning food imports from Ukraine to protect local producers hit by an influx of cheaper Ukrainian supplies. 

Instead, Bucharest will wait for the European Commission, the EU executive, to enforce measures to help farmers in central and eastern Europe. 

"I think it is necessary we wait ... to see what the Commission decides, and then we will meet again to establish long-term rules, because Romania and Ukraine are large grain producing countries," Agriculture Minister Petre Daea said. 

A major grain transit hub for Ukraine, Romania's Black Sea port of Constanta shipped some 12 million tons of Ukrainian grains in 2022 and the first quarter of this year. 

Daea said, after talks with Ukrainian Agriculture Minister Mykola Solsky, that Romania and Ukraine would consult weekly on expected grain volumes, as Romania tries to limit imports. 

Solsky told reporters it was obvious the situation required quick decisions, adding: "We understand these decisions must be comfortable for Romanian farmers and ... we wait for the European Commission." 

GRAIN DEAL HANGS IN BALANCE 

The European Commission has announced plans to offer farmers in eastern and central Europe compensation for some products if the unilateral import bans are lifted, but the countries affected want the list of products widened. 

Black Sea grain exports are more significant for Kyiv than exports to Eastern Europe, and talks are under way on the status of the Black Sea Grain Initiative deal agreed last July to create a safe shipping channel. 

The initiative unblocked three Ukrainian Black Sea ports five months after Russia's invasion, and was designed to alleviate a global food crisis as well as to support Ukraine. 

Russia says it has agreed to extend the deal only until May 18 even though Kyiv and its allies say the terms of the agreement stipulate that it should continue beyond that date. 

Worried about its ability to ship grain from its Black Sea ports, Ukraine has stepped up exports via ports on the Danube River that flows though central and southeastern Europe. 

 


ACWA Power completes refinancing of Rabigh 3 Independent Water Project

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ACWA Power completes refinancing of Rabigh 3 Independent Water Project

RIYADH: Saudi utility giant ACWA Power has completed the refinancing of the Rabigh 3 Independent Water Project, located in the western region of the Kingdom. 

Rabigh 3 is a seawater desalination plant with a capacity of 600,000 cubic meters of potable water per day, using reverse osmosis technology.

In a press statement, the Tadawul-listed company said the refinancing was executed through a capital-markets-led approach, anchored by the issuance of a long-term senior secured project bond. 

The refinancing was anchored by investment firm KKR as the largest lender, with participation from other investors including Barings, Hong Kong Mortgage Corp., and Clifford Capital, as well as Sumitomo Mitsui Trust Bank, and SBI Shinsei Bank. There was also regional support from Riyadh Bank and Abu Dhabi Commercial Bank. 

“The transaction highlights ACWA Power’s continued innovation in infrastructure financing, combining capital-markets instruments with strong project-level credit and global institutional participation,” said Marco Arcelli, the company’s CEO.

He added: “By meeting international rating agencies’ and debt investors’ expectations, ACWA Power has reinforced the bankability of large-scale desalination projects and expanded access to long-term funding for essential infrastructure.” 

Arcelli also said the refinancing supports the company’s ambition to continue providing more than half of Saudi Arabia’s desalinated water capacity. 

The new transaction replaces the project’s previous debt facility with a diversified financing structure that broadens the investor base and enhances long-term funding resilience. 

The statement added that the refinancing underscores ACWA Power’s ability to structure complex financings that meet the requirements of global institutional investors while aligning with international sustainability standards. 

“Rabigh 3 IWP is a cornerstone asset for water security in the Kingdom, and the strong participation from international investors reflects its quality, reliability, and long-term value,” said Abdulhameed Al-Muhaidib, chief financial officer at ACWA Power. 

He added: “This transaction demonstrates ACWA Power’s commitment to responsible finance, sustainable water infrastructure, and long-term environmental stewardship. We’re very proud to issue our first-ever blue bond that attracts new international investors to our Saudi fleet.” 

The refinancing marks ACWA Power’s first alignment with the International Finance Corporation’s Blue Finance Guidelines, reinforcing the plant’s strong operational performance while supporting Saudi Arabia’s Vision 2030 infrastructure goals.