Russia halts wartime deal allowing Ukraine to ship grain

In a blow to global food security, Russia has halted a breakthrough wartime deal that allows grain to flow from Ukraine to countries in Africa, the Middle East and Asia where hunger is a growing threat and high food prices have pushed more people into poverty.

Kremlin spokesman Dmitry Peskov said Russia would suspend the Black Sea Grain Initiative until its demands to get its own food and fertiliser to the world are met, the Russian Embassy said in a press statement. While Russia has complained that restrictions on shipping and insurance have hampered its agricultural exports, it has shipped record amounts of wheat. At the same time, Peskov said that when the part of the Black Sea deal related to Russia is implemented, Russia will immediately return to implementation of the deal.

The suspension marks the end of an accord that the UN and Turkey brokered last summer to allow food to leave the Black Sea region after Russia's invasion of its neighbour worsened a global food crisis. The initiative is credited with helping lower soaring prices of wheat, vegetable oil and other food commodities. Ukraine and Russia are both major global suppliers of wheat, barley, sunflower oil and other affordable food products that developing nations rely on.

The grain deal provided assurances that ships won't be attacked entering and leaving Ukrainian ports, while a separate agreement facilitated the movement of Russian food and fertiliser. While Western sanctions do not apply to Moscow's agricultural shipments, some companies initially were wary of doing business with Russia because of the measures. The Black Sea Grain Initiative has allowed three Ukrainian ports to export 32.9 million metric tons of grain and other food to the world, more than half of that to developing nations, according to the Joint Coordination Centre in Istanbul.

The agreement was renewed for 60 days in May, but in recent months, the amount of food shipped and number of vessels departing Ukraine have plunged, with Russia accused of preventing additional ships from participating. The war in Ukraine sent food commodity prices to record highs last year and contributed to a global food crisis also tied to other conflicts, the lingering effects of the COVID-19 pandemic, droughts and other climate factors.

High costs for grain needed for food staples in places like Egypt, Lebanon and Nigeria exacerbated economic challenges and helped push millions more people into poverty or food insecurity. Rising food prices affect people in developing countries disproportionately, because they spend more of their money on meals. Poorer nations that depend on imported food priced in dollars also are spending more as their currencies weaken and they are forced to import more because of climate change. Places like Somalia, Kenya, Morocco and Tunisia are struggling with drought.

Under the deal, prices for global food commodities like wheat and vegetable oil have fallen, but food was already expensive before the war in Ukraine and the relief hasn't trickled down to kitchen tables. The Black Sea deal is absolutely critical for the food security of a number of countries, and its loss will compound the problems for those facing high debt levels and climate fallout.

The grain deal has faced setbacks since it was brokered by the UN and Turkey: Russia pulled out briefly in November before rejoining and extending the deal. In March and May, Russia would only extend the deal for 60 days, instead of the usual 120. The volume of grain shipped per month fell from a peak of 4.2 million metric tons in October to 1.3 million metric tons in May, the lowest volume since the deal began. Exports expanded in June to a bit over 2 million metric tons, thanks to larger ships able to carry more cargo.

Ukraine has accused Russia of preventing new ships from joining the work since the end of June.