2023-07-18 09:52:28
By Clara Galtier
Posted yesterday at 7:50 p.m., Updated just now
The bulk carrier TK Majestic carries grain as part of the United Nations Black Sea Grain Initiative MEHMET CALISKAN / REUTERS
DECRYPTION – If the markets remained calm after the announcement, a lasting closure of the maritime corridor could trigger a rise in food prices around the world.
As the last freighter carrying Ukrainian grain left the port of Odessa on Sunday, Russia followed through on its threat. After casting doubt, Moscow confirmed on Monday the suspension of the Black Sea agreement which has allowed the export of 33 million tonnes of agricultural products from Ukraine to 45 countries and on three continents for a year (mainly wheat and corn).
Read also War in Ukraine: what are the Russian demands to renew the grain agreement?
In recent weeks, Russia has repeatedly stated that it does not see “no reasonto extend this maritime corridor, considering, among other things, that the commitments made to remove the obstacles to its own agricultural exports have not been respected. Moscow is also demanding the reconnection of the Russian Agricultural Bank to the Swift payment system, banned by the European Union in response to the invasion.
Ukraine is a major producer of grains and oilseeds, and the interruption of its exports at the start of the war pushed world food prices to record highs. In Europe, a ton of wheat traded at 350 euros, against 250 euros today. This agreement on exports to the Black Sea, negotiated in pain with the sponsorship of the UN and Turkey in July 2022, had relaxed prices and thus alleviated the world food crisis. The World Food Program (WFP), of which Ukraine was the main supplier, was able to relieve a dozen countries in critical situation such as Afghanistan, Sudan or Yemen.
War escalation
Moscow’s announcement not to extend the agreement therefore raises the specter of the food crisis on developing countries already shaken by…
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