Russia-Ukraine Grain Deal Terminated

According to a report, the U.N.-backed pact that has enabled Ukraine to sell grain and other primary products throughout the invasion is about to expire, and Russia has no plans to renew it.

The deal struck in July last year authorized international exports of maize, wheat, barley, and other food items from three chosen ports in Ukraine.  This arrangement is referred to as the Black Sea Grain Initiative.

While not flawless, the agreement has helped keep food prices stable, according to experts. U.N. Secretary-General António Guterres hailed the agreement as a symbol of hope when it was inked last summer.

The report shows the future of this is now doubtful. Earlier this week, Dmitry Peskov, the Kremlin’s official spokesperson, informed reporters on Monday that the arrangement had become invalid.

It was reported that Russian President Vladimir Putin and Recep Tayyip Erdogan, Turkey’s President, who negotiated the accord, spoke on the phone on Saturday.  It suggested that Putin was open to extending the agreement beyond its original expiration date of Sunday.

Since the agreement’s start, Moscow has been dissatisfied because it claims it has not fulfilled its commitment to remove Western restrictions that have prevented the sale of Russian agricultural products. Russia has said that sanctions-related transportation, banking, and insurance constraints make commerce impossible, but crops and chemical fertilizers are not sanctioned.

According to an Egyptian media outlet, Egyptian First Assistant Minister of Supply and Internal Trade Ibrahim Ashmawy minimized the effect Russia’s departure from the critical grain deal would have on the domestic market. The arrangement had enabled Ukraine to ship grain beyond the Black Sea.

Ashmawy stated that Egypt had been working to enhance the strategic store of products and boost absorptive capabilities since the coronavirus epidemic, which disrupted supply lines, as did the Russia-Ukraine conflict.

Ashmawy said Egypt is well-prepared for the next six months thanks to its stockpiles of wheat and other vital goods. After being 80% reliant on wheat exports from Ukraine and Russia during the coronavirus period, Egypt has sought to diversify its supply networks, which currently comprise 22 origin sites. They have realized the need to secure reserves and build massive storage facilities.