Russia Agrees To Extend Vital Ukraine Grain Deal

A critical deal to free up shipments of grain from war-ravaged Ukraine was extended at the last minute Wednesday, after Russia threatened to pull out of the pact.

Turkey’s President Recep Tayyip Erdogan, who, along with the United Nations, brokered the initial pact last year, announced the extension, saying: “I want to give good news. With the efforts of our country, the support of our Russian friends and the contribution of our Ukrainian friends, the Black Sea Grain Initiative has been extended by another two months.”

The agreement, put together last summer, was a boost not only for Ukrainian exports but also for countries across swathes of Africa, Asia and the Middle East that rely on Ukrainian wheat supplies. The deal has facilitated the shipment of more than 30 million metric tons of Ukrainian grain since July last year. U.N. figures show that more than half went to developing nations, who were being battered by inflation on the international food markets triggered by Russia’s invasion of Ukraine.

Ukraine is a central cog in the world’s food supply system. Prior to the war the country accounted for some 40 per cent of international wheat supplies.
The conflict triggered a stop to shipments, as Russia blockaded Ukrainian ports in the Black Sea. Under the agreement, ships were finally allowed to sail, stopping in Turkish ports where the U.N. set up a joint inspection mechanism to ensure the ships weren’t carrying weapons or other supplies for the war.

But in recent weeks Russia had threaten to pull out of the pact, demanding more action to facilitate international supplies of its own food and fertilizer products. While the latter aren’t covered by international sanctions applied to Moscow in the wake of the Ukraine war, the Kremlin said other restrictions—including those on Russian financial institutions—were hampering its trade.