Africa and Asia has been said to be the region that will be hit most by the effects of the Grain deal between Russia and Ukrain that is terminating on Monday 17th July, 2023. Disclosing this, the Ukrainian Foreign Minister Dmytro Kuleba told CBS on Monday that “Prices for grain all across the world will go up, and people in the most vulnerable regions of Asia, Africa, will feel it most,”.
Putin, discussing the Black Sea Grain Deal with members of Security Council via video link on july 14th, 2023
The Russian government said on Monday it was suspending its participation in the Grain Deal, that allowed the export of Ukrainian grain across the black sea to the countries of the world. The deal in the face of the ongoing war allowed Ukraine to export grain by sea, with ships bypassing a Russian blockade of the country’s Black Sea ports and navigating safe passage through the waterway to Turkey’s Bosphorus Strait in order to reach global markets. The deals also involves Vessels returning back to Ukraine to be inspected by Russian, Ukrainian and Turkish officials, to ensure weapons were not being smuggled into Ukraine. This deal has proved vital for stabilizing global food prices and bringing relief to the developing countries which rely on Ukrainian exports. The impact of the war on global food markets was immediate and extremely painful, especially because Ukraine is a major supplier of grain to the World Food Programme (WFP). It will be recalled that the prices of grains like wheat skyrocketed at the breakout of the Russia-Ukraine war, especially, in Africa.
Ukraine President Volodymyr Zelenskyy at the signig of the Black Sea Grain agreement in July 2022.
The Black Sea Grain agreement, which was brokered by Turkey and the United Nations in July 2022, was officially set to expire at 5 p.m. ET on Monday (midnight local time in Istanbul, Kyiv, and Moscow). This deal is important to the availability of grain foods in the world because, according to the European Commission, Ukraine accounts for 10% of the world’s wheat market, 15% of the corn market, and 13% of the barley market. The country is also a key global player in the market of sunflower oil. The Food and Agriculture Organization (FAO), an UN body, warned at the time that as many as 47 million people could be pushed into “acute food insecurity” because of the war in Ukraine, the reason for the deal. According to a report, since its implementation, the Black Sea Grain Initiative has allowed for the export of about 33 million tons of foodstuffs from Ukraine. The World Food Programme has shipped more than 725,000 tons to support humanitarian operations – helping to relieve hunger in some of the hardest hit corners of the world, including Afghanistan, Ethiopia, Kenya, Somalia, Sudan and Yemen.
Dmitry Pescov, Russian government Spokesperson
The world is however back to its initial fear as Russia announced a pull out. Kremlin spokesperson Dmitry Peskov told reporters on Monday that Russia would not renew the pact right now, saying it “has been terminated.” It should be noted that the decision of the Russian government not to renew the deal at its expiration on 17th of July is because Russia alleged it is not benefitting from the deal. According Peskov, Russia has for some time complained that it is being prevented from adequately exporting its own foodstuffs, and he cited that objection as the reason for pulling out of the deal. “As soon as the Russian part is completed, the Russian side will return to the implementation of this deal immediately,” he told reporters.
In the same vein, the Russian President Vladimir Putin said that the main objective of the deal, which is to supply grain to countries in need – “has not been realized,” corroborating Peskov claim that Russia faced obstacles exporting its own food.
UN Secretary of State, Antony Blinken
However, US Secretary of State Antony Blinken last week accused Russia of using the grain deal “as a weapon.” and Ukrainian Foreign Minister Dmytro Kuleba told CBS on Monday that “Russia has been slowly killing the grain initiative, from one extension to another.” The effect he said will be make “Prices for grain all across the world will go up, and people in the most vulnerable regions of Asia, Africa, will feel it,”.
Ukrainian Foreign Minister Dmytro Kuleba
The deal had allowed Ukraine to export grain by sea, with ships bypassing a Russian blockade of the country’s Black Sea ports and navigating safe passage through the waterway to Turkey’s Bosphorus Strait in order to reach global markets.
Vessels were inspected before they arrived in Ukraine by Russian, Ukrainian and Turkish officials, to ensure weapons were not being smuggled into Ukraine.
It proved vital for stabilizing global food prices and bringing relief to the developing countries which rely on Ukrainian exports. The impact of the war on global food markets was immediate and extremely painful, especially because Ukraine is a major supplier of grain to the World Food Programme (WFP).
According to the European Commission, Ukraine accounts for 10% of the world wheat market, 15% of the corn market, and 13% of the barley market. It is also a key global player in the market of sunflower oil. The Food and Agriculture Organization (FAO), an UN body, warned at the time that as many as 47 million people could be pushed into “acute food insecurity” because of the war.
Since its implementation, the Black Sea Grain Initiative has allowed for the export of about 33 million metric tons of foodstuffs from Ukraine. The World Food Programme has shipped more than 725,000 tons to support humanitarian operations – helping to relieve hunger in some of the hardest hit corners of the world, including Afghanistan, Ethiopia, Kenya, Somalia, Sudan and Yemen.
In withdrawing from the pact, the Russian Foreign Ministry said Monday that its government was removing guarantees for safe navigation in the Black Sea. Though, there are alternative routes for Ukrainian grain and oilseed exports by rail through Eastern Europe, but they can’t readily cope with the volume that Ukraine wants to export.
A UN official confirmed to CNN that the UN office in Istanbul, Turkey, received written notice from Russia that they were ending participation on Monday.
The UN official added that the main concern is the inevitable human suffering that will result from the deal’s termination: “There is simply too much at stake in a hungry and hurting world.”