End of grain deal: international protests, grain prices rise again

The grain deal that allowed Ukrainian grain and Russian fertilizer to pass through the Black Sea expired overnight. The agreement "has de facto ended (on Monday)," Kremlin spokesman Dmitry Peskov said yesterday, adding that "as soon as the part concerning Russia is satisfied, Russia will immediately return to the grain agreement." Since then, criticism has multiplied and cereal prices are rising.

Wheat in a field near the southern Ukrainian town of Nikolaev. /Photo taken July 8, 2013 © REUTERS/Vincent Mundy

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Ukraine shows its willingness to continue exporting its grain through the Black Sea, with or without Moscow's agreement on ship safety. "Even without Russia, everything must be done so that we can use this corridor (for exports) in the Black Sea. We are not afraid," Ukrainian President Volodymyr Zelensky said. Early Tuesday, Ukrainian air defense was activated in the Odessa region (south) of which three ports were part of the grain agreement, said local authorities.

Yesterday, French Foreign Minister Catherine Colonna denounced Russian "blackmail" and US Ambassador Linda Thomas-Greenfield "a new act of cruelty" by Moscow. The Russian decision was denounced by UN chief Antonio Guterres, who was personally involved in negotiating the deal, reports our correspondent in New York, Carrie Nooten. Especially since it had notably allowed the trade in Russian grain to return to the same level as before the war in Ukraine, despite the sanctions. This is a particular affront to the UN secretary-general who had fought for circumvention of Western sanctions and who knows that this will make the distribution of humanitarian aid even more complicated.

" READ ALSO War in Ukraine: the agreement on Ukrainian cereals "de facto completed", announces Russia

Immediate market reaction

The market reacted and the prices of these foodstuffs immediately rose yesterday while thanks to the agreement, they had fallen by 23% since March 2022. Antonio Guterres had written to Vladimir Putin last week, and proposed that a subsidiary of Russia's main agricultural bank, then under sanctions - be reconnected to the global SWIFT system: the European Union has given its consent. But the Russian president didn't even respond.

Russia has always pointed to imbalances in the agreement signed last July. Listing at each negotiation its demands: the reconnection to the international banking system Swift of Rosselkhozbank, the bank specializing in agriculture or the cancellation of sanctions so that Russian ships can access foreign ports in particular to export its fertilizers.

See alsoGrain agreement: "We must expect a rise in the price of wheat"

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  • Russia
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  • Agriculture and Fisheries