Russia Suspends Key Grain Deal With Ukraine—Threatening Global Food Supply

Topline

The Russian government on Monday suspended a deal with Ukraine to allow the safe passage of food grains through the Black Sea, a move that is likely to threaten global food security and drive up prices.

A photo shows the filling of the hold on the UN-chartered vessel MV Valsamitis while it is loaded to … [+] deliver 25,000 tonnes of Ukrainian wheat to Kenya and 5,000 tonnes to Ethiopia, at the port of Chornomorsk, east of Odessa on the Black Sea.

AFP via Getty Images

Key Facts

Kremlin spokesperson Dmitry Peskov announced the suspension of the deal, saying Moscow will “promptly return to implementation of this deal,” once its side of the Black Sea grain agreement is fulfilled.

Russia has blamed Western sanctions for impeding its ability to export its own grain and fertilizer supplies, which it claims are also important for global food security.

While the West hasn’t sanctioned Russian grain and fertilizer exports, Moscow claims it is heavily impeded by sanctions on transport, shipping, finance and insurance, among other things.

The suspension of the deal caused the U.S. benchmark Chicago Wheat Futures to surge more than 3% to $6.4 per bushel early on Monday.

This is a developing story.

Source: https://www.forbes.com/sites/siladityaray/2023/07/17/russia-suspends-key-grain-deal-with-ukraine-threatening-global-food-supply/