Russia provisionally terminated the Black Sea Grain initiative today, a wartime deal that allowed Ukraine to export grain to countries facing hunger and high food prices in Africa, the Middle East, and Asia, reports AP News.
The grain deal assured Ukraine that ships entering or leaving Ukrainian ports wouldn’t be attacked, and a separate related agreement helped move Russian food and fertilizer.
Dmitry Peskov, a spokesman for Russia, said that the agreement will be suspended until its demands to get its own food and fertilizer exported are met. “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. Companies may be wary of doing business with the country despite Western sanctions of Russia not applying to agricultural shipments.
Ukraine and Russia are major suppliers of wheat, barley, sunflower oil, and other agricultural products that many countries, particularly developing nations, rely on, according to the report.
“The Black Sea deal is absolutely critical for the food security of a number of countries,” and its loss will further affect those facing high debt and climate fallout, said Simon Evenett, professor of international trade and economic development at Switzerland’s University of St. Gallen. Full Story
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