Russia halts wartime deal allowing Ukraine to ship grain in a blow to global food security

 Russia halted an unprecedented wartime deal Monday that allows grain to flow from Ukraine to countries in Africa, the Middle East and Asia where hunger is a growing threat and high food prices have pushed more people into poverty.

Kremlin spokesman Dmitry Peskov announced Russia would suspend the Black Sea Grain Initiative until its demands to get its own agricultural shipments to the world are met — even though the country has been shipping record amounts of wheat and its fertilizers also have been flowing.

“When the part of the Black Sea deal related to Russia is implemented, Russia will immediately return to the implementation of the deal,” he said. Russia has complained that restrictions on shipping and insurance have hampered its exports of food and fertilizer — also critical to the global food chain.

The suspension marks the end of an accord that the United Nations and Turkey brokered last summer to allow food to leave the Black Sea region after Russia’s invasion of its neighbor worsened a global food crisis. The initiative is credited with helping lower soaring prices of wheat, vegetable oil and other food commodities.

Ukraine and Russia are both major global suppliers of wheat, barley, sunflower oil and other affordable food products on which developing nations rely.

The grain deal provided assurances that ships won’t be attacked entering and leaving Ukrainian ports, while a separate agreement facilitated the movement of Russian food and fertilizer. While Western sanctions do not apply to Moscow’s agricultural shipments, some companies may be wary of doing business with Russia because of the measures.

Ukrainian President Volodymyr Zelenskyy’s adviser, Mykhailo Podolyak, said the suspension was expected and believes it’s political theater.

“The statement itself immediately includes an escape clause,” he said. “Therefore, we are dealing with classic public techniques of the Russian Federation that no longer require significant reciprocal reactions.”

Turkish President Recep Tayyip Erdoğan said the country’s foreign minister would speak with his Russian counterpart Monday — and that he was hopeful the deal would be extended.

The suspension of the deal sent wheat prices up about 3% in Chicago trading, to $6.81 a bushel. Analysts don’t expect more than a temporary bump to food commodity prices because countries such as Russia and Brazil have ratcheted up wheat and corn exports, but food insecurity worldwide is growing.

The Black Sea Grain Initiative has allowed three Ukrainian ports to export 32.9 million metric tons of grain and other food to the world, more than half of that to developing nations, according to the joint coordination center in Istanbul.

The agreement was renewed for 60 days in May, but in recent months, the amount of food shipped and the number of vessels departing Ukraine have plunged, with Russia accused of preventing additional ships from participating.

The war in Ukraine sent food commodity prices to record highs last year and contributed to a global food crisis also tied to other conflicts, the lingering effects of the Covid pandemic, droughts and other climate factors.

High costs of grain needed for food staples in countries such as Egypt, Lebanon and Nigeria exacerbated economic challenges and helped push millions more into poverty or food insecurity.

Rising food prices affect people in developing countries disproportionately, because they spend more of their money on meals.

Under the deal, prices of global food commodities such as wheat and vegetable oil have fallen, but food was already expensive before the war in Ukraine and the relief hasn’t trickled down to kitchen tables.

“The Black Sea deal is absolutely critical for the food security of a number of countries,” and its loss will compound the problems for those facing high debt levels and climate fallout, said Simon Evenett, a professor of international trade and economic development at the University of St. Gallen in Switzerland.

The U.N. Food and Agriculture Organization said this month that 45 countries need outside food assistance, with high local food prices “a driver of worrying levels of hunger” in those places

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top