Global food crisis becomes imminent as Russia withdraws from grain…

Key Takeaways:

Russia has withdrawn from the Black Sea grain export deal
Moscow accuses Kyiv of attacking its Black Sea Fleet
The crisis has ignited worries of a global food shortages in the coming weeks

Global food crisis has become imminent as Russia withdraws from the Black Sea grain export deal amid the war in Ukraine. Food prices are up — The Russian invasion of Ukraine has impacted global food supplies. Image by Frauke Riether from Pixabay

YEREVAN (CoinChapter.com) — Concerns about a possible global food crisis have once again taken center stage following Russia’s recent withdrawal from the grain export deal. The Kremlin resumed its blockage of the Ukrainian ports after accusing Kyiv of conducting drone attacks against Russia’s Black Sea Fleet ships in occupied Crimea. The move will become a huge hindrance to the global export of food grain, especially to countries facing acute shortages.

Despite the ongoing Russian aggression, Ukraine exported over 9 million tons of grain into the market. This has helped keep a check on global food prices. However, according to Ukrainian authorities, Russia has blocked around 220 ships from exporting grain.

Russia has withdrawn from the Black Sea grain export deal

U.S. President Joe Biden called Russia’s decision to withdraw from the Black Sea Grain Initiative a “really outrageous” act.

“It is going to increase starvation. There’s no reason for them to do that, but they are always looking for some rationale to be able to say the reason they are doing something outrageous is because the West made them do it….The U.N. negotiated that deal and that should be the end of it.”
President Biden said.

What is the Black Sea grain initiative?

The Black Sea Grain Initiative is a unique Türkiye-brokered pact signed on 22 July 2022 between the United Nations (UN), Ukraine, and the Russian Federation in Istanbul.

Under the grain export deal, Russia agreed to allow a safe maritime humanitarian corridor to export grain, among other agricultural stuff, from three key Ukrainian ports: Chornomorsk, Odesa, and Yuzhne.

Ukraine and Russia are the world’s largest grain exporters. Ukraine is known to supply around 45 million tonnes of grain to the global market every year. Russia, on the other hand, tops the grain exporters’ list. Experts believe the country will export 39 million tonnes of wheat from the 94.7 million tonnes of produce in 2022.

Russia signed the Black sea grain export deal with Ukraine and the UN in July.

With around 90% of the grain export from Ukraine going from the Black Sea, Russia’s cooperation in keeping the supply going is very vital.

Ukrainian President Volodymyr Zelenskky also expressed his anger at Russia’s decision.

“This bulk ship with wheat for the U.N. food program and other vessels with agricultural products are forced to wait, because Russia is blackmailing the world with hunger,”
Zelensky said.

However, it appears that U.N. chief António Guterres succeeded in convincing the Kremlin to allow some ships to pass through. According to Oleksandr Kubrakov, Ukraine’s minister of infrastructure, Ikaria Angel, carrying 40,000 tons of grain to Ethiopia was one of the ships to leave the Ukrainian port.

Russia blocked Ukrainian ships carrying grain from leaving Ukrainian ports after withdrawing from the Black Sea grain export initiative — Russia blocked Ukrainian ships carrying grain from leaving Ukrainian ports after withdrawing from the deal

Meanwhile, the European Union has urged Russia to reverse its decision to withdraw from the Black Sea grain export deal.

Global Food Crisis looms amid Russia’s grain export deal exit

According to a recent report by Al Jazeera, around 400 million people worldwide rely on Ukrainian food supplies. Over 180 million people in 41 countries could experience food shortages, as per projections by the UN Food and Agriculture Organization (FAO).

Global wheat prices are up as Russia withdraws from the grain export deal

Earlier this year Secretary-General Antonio Guterres predicted that the Russian invasion of Ukraine could cause what he called the “greatest global food insecurity crisis of our time.”

“Today’s crisis in grain and cooking oil could affect many other foods including rice, impacting billions of people in Asia and the Americas…But let’s be clear: there is no effective solution to the food crisis without reintegrating Ukraine’s food production, as well as the food and fertilizer produced by Russia and Belarus, into world markets, despite the war,”
Guterres had warned.

Meanwhile, global wheat prices continue to increase. Wheat futures and contracts spiked by around 6% upon news of Russia exiting the grain export deal.

As the winter approaches, any prolonged suspension of wheat exports from Ukraine can create devastating famines ahead.