Millions could be affected by suspension of grain deal

Russia suspends its cooperation in the grain trade with Ukraine until further notice. The agreement, which allowed Ukrainian grain to be exported across the Black Sea despite the war, has thus come to an end. The grain deal was arranged a year ago through the mediation of Turkey and the UN. The agreements allowed Ukraine to export nearly 33 million tonnes of maize, wheat and other grains last year, mainly to countries in Africa, Asia and the Middle East.

Russia says that agreements concerning Russia have not been fulfilled. Putin’s spokesman Peskov said exports of Russian fertilizer and wheat were still being hampered. These exports are not subject to Western sanctions, but banks, insurers and freight forwarders in the West may be reluctant to work with Russia because of the war. Russia also wants its agricultural bank, Rosselkhozbank, to be reinstated for international payments. According to Ukrainian President Zelensky, Ukraine has two agreements for grain exports, one with Turkey and the UN, and the other also including Russia. The president has therefore instructed his foreign ministry to ask the UN and Turkey if they are willing to proceed with the initiative without Russia.

Turkish President Erdogan said he expected Putin to eventually support the deal. He said the Turkish foreign minister was holding consultations with his Russian counterpart Lavrov on the issue. Erdogan declared he would call Putin on the issue later this week. European Commission President von der Leyen described Russia’s action on Twitter as cynical: “I strongly condemn Russia’s cynical move to terminate the Black Sea Grain Initiative, despite UN and Türkiye’s efforts. The EU is working to ensure food security for the world’s vulnerable. EU Solidarity Lanes will continue bringing agrifood products out of Ukraine and to global markets.”

Concerned reactions are being expressed around the world at Russia’s decision to pull out of its grain deal with Ukraine for the time being. Dependent countries are anxious about the consequences of the suspension. There are fears that food prices will rise and become unaffordable. Ukraine is hoping for a resumption of the deal, if necessary without Russia. Ukraine is one of the world’s largest exporters of grain and other food products. Any disruption to these exports could have an upward effect on global food prices, particularly in the most impoverished countries.

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