Russia Abandons Deal Seen As Key To Keeping Global Food Prices Stable

Moscow announced early Monday that it had pulled out of a deal that had allowed Ukraine to export crucial foodstuffs, above all grain.

The agreement, which allowed Ukraine to export its grain by sea – despite the Russian naval blockade – was instrumental in keeping global food prices from spiraling further.

Ukraine is one of the world’s largest wheat exporters, ranking fifth among total exports in 2022.

The deal, brokered by the United Nations and Turkey, was set to expire Monday. It had allowed grain from Ukraine to continue flowing to Africa, the Middle East and Asia, where a shortage of food and high prices are driving more and more people close to starvation.

Nevertheless, Russia said it would suspend its participation until its agreements are “fulfilled.” (RELATED: Trump Reveals Strategy To End Ukraine War Tomorrow)

The New York Times has more on the heightening uncertainty over global food supply and how the announcement has shaken geopolitical tensions on the ground:

The announcement appeared to be the most serious blow yet to a year-old agreement that had been a rare example of fruitful talks between the warring nations, and had helped to alleviate part of the global fallout from Russia’s full-scale invasion. Ukraine is a major producer of grain and other foodstuffs, and the United Nations had warned that some countries in the Middle East and Africa faced famine if Kyiv could not export its goods via the Black Sea.

A Kremlin spokesman, Dmitri S. Peskov, told journalists on Monday that the agreement was “suspended,” but added that the decision was not connected to the attack hours earlier on the Kerch Strait Bridge linking Russia to occupied Crimea. Russian officials blamed Ukraine for the bridge attack, but Kyiv has not taken responsibility.

Speaking about the grain agreement, Mr. Peskov said: “As soon as the Russian part is fulfilled, the Russian side will immediately return to the implementation of that deal.”

Russia has repeatedly complained about the agreement, which it considers one-sided in Ukraine’s favor. Russia’s Foreign Ministry on Monday issued a statement that emphasized its objections, including what it described as continued Ukrainian “provocations and attacks against Russian civilian and military facilities” in the Black Sea area, and said that the United Nations and Ukraine’s Western allies had not addressed Russian demands.

Speaking from Istanbul, Turkish President Recep Tayyip Erdogan announced he’d talk to Russian leader Vladimir Putin. Erdogan signaled hope he could persuade Putin to rejoin the deal. (RELATED: Turkey Gives Sweden Green Light To Join NATO)

“Despite the statement today, I believe the president of the Russian Federation, my friend Putin, wants the continuation of this humanitarian bridge,” he stated.

In the days leading up to the deal’s expiration, the U.N. offered Russia the opportunity for its agricultural bank to begin rejoining the Society for Worldwide Interbank Financial Telecommunication (SWIFT) international payment system. SWIFT is a secure messaging system used to make rapid cross-border transactions. It is the mechanism used to finance international trade and is considered integral to the free flow of goods.

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