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Russia said on Monday it had halted an unprecedented wartime agreement allowing grain to flow from Ukraine to countries in Africa, the Middle East and Asia where hunger is a growing threat and soaring food prices have pushed more people into poverty.
Kremlin spokesman Dmitry Peskov announced the suspension of the deal in a conference call with reporters, adding that Russia will return to the agreement after its demands are met.
Peskov said, “When the part of the Black Sea Agreement related to Russia is implemented, Russia will immediately return to implementing the agreement.”
It’s the end of a breakthrough deal brokered by the United Nations and Turkey last summer to allow food to leave the Black Sea region after Russia invaded its neighbor nearly a year and a half ago.
A separate agreement facilitated the movement of Russian food and fertilizer amid Western sanctions.
The two warring nations are major global suppliers of wheat, barley, sunflower oil and other affordable food products on which developing nations depend.
Russia has complained that restrictions on shipping and insurance have impeded its exports of food and fertilizer – also important to the global food chain.
But analysts and export data say Russia is shipping record amounts of wheat and fertilizer is flowing too.
The agreement was renewed for 60 days in May amid Moscow’s backtracking. In recent months, the amount of food shipped and the number of ships leaving Ukraine have fallen, with Russia accused of limiting additional ships able to participate.
The war in Ukraine sent food commodity prices to record levels last year, and contributed to a global food crisis also linked to the conflict and the ongoing effects of the COVID-19 pandemic, drought, and other climatic factors.
The high costs of grain for staple foods in places like Egypt, Lebanon and Nigeria have exacerbated economic challenges and helped drive millions of people into poverty or food insecurity.
People in developing countries spend more of their money on meals. The poorer countries that depend on importing dollar-priced foodstuffs also spend more with their currencies weakening and having to import more because of climate problems. Places like Somalia, Kenya, Morocco and Tunisia suffer from drought.
Global food commodity prices such as wheat and vegetable oils fell, but food was already very expensive before the war in Ukraine and relief did not shift to the kitchen tables.
“The Black Sea deal is critical to the food security of a number of countries,” said Simon Evenit, professor of international trade and economic development at the university, and losing it would exacerbate problems for those facing high debt levels and climate fallout. St. Gallen in Switzerland.
He pointed out that high interest rates aimed at targeting inflation, in addition to weak currencies, “make it difficult for many developing countries to finance purchases in dollars in global markets.”
While analysts expect nothing more than a temporary hike in food commodity prices because places like Russia and Brazil have increased exports of wheat and corn, food insecurity is on the rise.
The United Nations Food and Agriculture Organization said this month that 45 countries need outside food aid, with high domestic food prices “a driver of alarming levels of hunger” in those places.
The Black Sea Grain Initiative has allowed three Ukrainian ports to export 32.9 million metric tons of grain and other foodstuffs to the world, more than half of that to developing countries, according to the Joint Coordination Center in Istanbul.
But the deal has faced setbacks since it was brokered by the United Nations and Turkey: Russia withdrew briefly in November before returning to the deal and extending it.
In March and May, Russia will extend the deal by just 60 days, instead of the usual 120 days. The amount of grain shipped per month decreased from a peak of 4.2 million metric tons in October to 1.3 million metric tons in May, the lowest volume. Since the start of the transaction.
Exports expanded in June to just over two million metric tons, thanks to larger ships able to carry more cargo.
Ukraine has accused Russia of blocking new ships joining the work since the end of June, with 29 ships waiting in waters off Turkey to join the initiative. Joint inspections intended to ensure that ships carried only grain and not weapons that could aid either side, also slowed down considerably.
Average daily searches have fallen steadily from a peak of 11 in October to about 2.3 in June. Ukrainian and US officials blamed Russia for the slowdown.
Meanwhile, shipments of Russian wheat hit an all-time high after a big harvest. It exported 45.5 million metric tons in the 2022-2023 trade year, with another record of 47.5 million metric tons expected in 2023-2024, according to USDA estimates.
The previous figure is more wheat than any country exported in one year, said Caitlin Welch, director of the Global Food and Water Security Program at the Center for Strategic and International Studies.
Kremlin spokesman Dmitry Peskov announced the suspension of the deal in a conference call with reporters, adding that Russia will return to the agreement after its demands are met.
Peskov said, “When the part of the Black Sea Agreement related to Russia is implemented, Russia will immediately return to implementing the agreement.”
It’s the end of a breakthrough deal brokered by the United Nations and Turkey last summer to allow food to leave the Black Sea region after Russia invaded its neighbor nearly a year and a half ago.
A separate agreement facilitated the movement of Russian food and fertilizer amid Western sanctions.
The two warring nations are major global suppliers of wheat, barley, sunflower oil and other affordable food products on which developing nations depend.
Russia has complained that restrictions on shipping and insurance have impeded its exports of food and fertilizer – also important to the global food chain.
But analysts and export data say Russia is shipping record amounts of wheat and fertilizer is flowing too.
The agreement was renewed for 60 days in May amid Moscow’s backtracking. In recent months, the amount of food shipped and the number of ships leaving Ukraine have fallen, with Russia accused of limiting additional ships able to participate.
The war in Ukraine sent food commodity prices to record levels last year, and contributed to a global food crisis also linked to the conflict and the ongoing effects of the COVID-19 pandemic, drought, and other climatic factors.
The high costs of grain for staple foods in places like Egypt, Lebanon and Nigeria have exacerbated economic challenges and helped drive millions of people into poverty or food insecurity.
People in developing countries spend more of their money on meals. The poorer countries that depend on importing dollar-priced foodstuffs also spend more with their currencies weakening and having to import more because of climate problems. Places like Somalia, Kenya, Morocco and Tunisia suffer from drought.
Global food commodity prices such as wheat and vegetable oils fell, but food was already very expensive before the war in Ukraine and relief did not shift to the kitchen tables.
“The Black Sea deal is critical to the food security of a number of countries,” said Simon Evenit, professor of international trade and economic development at the university, and losing it would exacerbate problems for those facing high debt levels and climate fallout. St. Gallen in Switzerland.
He pointed out that high interest rates aimed at targeting inflation, in addition to weak currencies, “make it difficult for many developing countries to finance purchases in dollars in global markets.”
While analysts expect nothing more than a temporary hike in food commodity prices because places like Russia and Brazil have increased exports of wheat and corn, food insecurity is on the rise.
The United Nations Food and Agriculture Organization said this month that 45 countries need outside food aid, with high domestic food prices “a driver of alarming levels of hunger” in those places.
The Black Sea Grain Initiative has allowed three Ukrainian ports to export 32.9 million metric tons of grain and other foodstuffs to the world, more than half of that to developing countries, according to the Joint Coordination Center in Istanbul.
But the deal has faced setbacks since it was brokered by the United Nations and Turkey: Russia withdrew briefly in November before returning to the deal and extending it.
In March and May, Russia will extend the deal by just 60 days, instead of the usual 120 days. The amount of grain shipped per month decreased from a peak of 4.2 million metric tons in October to 1.3 million metric tons in May, the lowest volume. Since the start of the transaction.
Exports expanded in June to just over two million metric tons, thanks to larger ships able to carry more cargo.
Ukraine has accused Russia of blocking new ships joining the work since the end of June, with 29 ships waiting in waters off Turkey to join the initiative. Joint inspections intended to ensure that ships carried only grain and not weapons that could aid either side, also slowed down considerably.
Average daily searches have fallen steadily from a peak of 11 in October to about 2.3 in June. Ukrainian and US officials blamed Russia for the slowdown.
Meanwhile, shipments of Russian wheat hit an all-time high after a big harvest. It exported 45.5 million metric tons in the 2022-2023 trade year, with another record of 47.5 million metric tons expected in 2023-2024, according to USDA estimates.
The previous figure is more wheat than any country exported in one year, said Caitlin Welch, director of the Global Food and Water Security Program at the Center for Strategic and International Studies.
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