Russia halts landmark deal that allowed Ukraine to export grain at time of growing hunger
LONDON — Russia on Monday halted a breakthrough wartime deal that allowed 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 said the Black Sea Grain Initiative would be suspended until demands to get Russian food and fertilizer to the world are met. An attack Monday on a bridge connecting the Crimean Peninsula to Russia was not a factor in the decision, he said.
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“When the part of the Black Sea deal related to Russia is implemented, Russia will immediately return to the implementation of the deal,” Peskov said.
Russian representatives at the operation center for the initiative were more definitive, calling the decision “a termination,” according to a note obtained by The Associated Press. Russia has complained that restrictions on shipping and insurance have hampered its agricultural exports, but it has shipped record amounts of wheat since last year.
The suspension marks the end of an accord that the U.N. and Turkey brokered last summer to allow shipments of food from the Black Sea region after Russia’s invasion of its neighbor worsened a global food crisis. The initiative is credited with helping reduce soaring prices of wheat, vegetable oil and other global food commodities.
Ukraine and Russia are both major global suppliers of wheat, barley, sunflower oil and other food that developing nations rely on.
The suspension of the deal sent wheat prices up about 3% in Chicago trading, to $6.81 a bushel, which is still about half what they were at last year’s peak. Prices fell later in the day.
Some analysts don’t expect more than a temporary bump in food staples traded on global markets because countries such as Russia and Brazil have ratcheted up wheat and corn exports. But food insecurity worldwide and prices at local stores and markets have risen as developing countries also struggle with climate change, conflict and economic crises. Finding suppliers outside Ukraine that are farther away also could raise costs, analysts say.
The grain deal provided guarantees that ships would not be attacked entering and leaving Ukrainian ports, while a separate agreement facilitated the movement of Russian food and fertilizer. Western sanctions do not apply to Moscow’s agricultural shipments, but some companies may be wary of doing business with Russia.
Ukrainian President Volodymyr Zelenskyy said he wanted to keep the initiative going even without Russia’s safety assurances for ships.
“We are not afraid,” he said, adding that shipping companies told him “everyone is ready to continue supplying grain” if Ukraine and Turkey were on board.
The Russian Foreign Ministry again declared the northwestern Black Sea area “temporarily dangerous.” Sergei Markov, a Moscow-based pro-Kremlin political analyst, speculated that if Ukraine doesn’t heed the warnings, Russia could strike Ukrainian ports or place mines in shipping routes.
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, according to the Joint Coordination Center in Istanbul.
