The Black Sea grain deal brokered by the United Nations and Turkiye for Ukraine and Russia has been terminated after Moscow pulled out of the deal.
This will deal a potential blow to the global food economy following the surge of wheat prices after Russia’s announcement.
Wheat and corn prices on global commodities markets jumped Monday after Russia pulled out of a crucial deal allowing the export of grain from Ukraine.
The collapse of the pact threatens to push up food prices for consumers worldwide and tip millions into hunger.
Trading data showed that August futures on the Chicago mercantile exchange rose 4.24% to $6.89 a bushel within minutes after the news broke out.
The increase somewhat subsided later, with the futures trading up 2.9% around 11:30 GMT.
Corn and soybeans futures also saw increases.
This all happened after Moscow earlier on Monday notified Ukraine, Turkiye, and the United Nations Secretariat that it refused to extend the Black Sea grain deal guaranteeing a safe trade corridor for vessels to export Ukrainian grain out of Black Sea Ports.
According to Kremlin spokesman Dmitry Peskov, Russia will return to the deal once all parties concerned implement the previously agreed steps.
Part of what the concerned parties agreed is for Russia’s connection to major agricultural lender, Rosselkhozbank, to the swift payment system, and lifting Western sanctions that posed problems for the insurance and logistics of Russian cargo.
But no progress has been made regarding Russia’s benefits from the Black Sea grain deal.
