End of grain deal to have major consequences on global food security
6 Min Read
The grain deal brokered by Turkey and the UN to export Russian and Ukrainian grain through the Black Sea had resulted in a 23% decrease in food prices globally, with the end of the deal food security, once again, comes to the forefront.
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An excavator loads grain into a cargo ship at a grain port in Izmail, Ukraine, on April 26, 2023. (AP)
The UN and humanitarian groups emphasized, on Monday, that the Russian decision to put an end to the grain deal that offered Ukrainian grain an export route via the Black Sea could have extensive consequences and an even greater impact on the most vulnerable countries according to Axios.
At the start of the war in Ukraine, in February 2022, Kiev's Black Sea ports got blocked by warships. But a deal brokered by Turkey and the United Nations in July 2022 -- and signed by Kiev and Moscow -- has allowed for the safe passage of exports of critical grain supplies.
The deal resulted in stabilizing global food prices, especially in regions where millions face the possibility of famine and food insecurity. The deal coming to an end threatens to push more people into a food crisis.
Russia and Ukraine, together, prior to 2022 provided the world with more than one-quarter of the world's wheat supply, reported Axios. The war caused a spike in global food prices while the grain deal allowed for more than 32 million metric tons of food commodities to be exported and thus resulting in food prices being reduced by 23% since March 2022.
According to Moscow, the lack of commitment is what drove Russia to bring the deal to an end. The deal, Moscow said, benefited Ukraine while sanctions hindered the export and sale of Russian grain and fertilizers. Moreover, certain conditions pertaining to the deal had not been met reported, Axios wrote, referencing the Kremlin.
UN spokesperson Stephane Dujarric told reporters that the UN addressed Russian President Vladimir Putin in a letter suggesting additional ways to "remove hurdles affecting financial transactions through the Russian Agricultural Bank."
The end of the deal will drive a new food insecurity crisis, adding pressure on the already overburdened humanitarian relief system, which is dealing with unprecedented displacement and a rise in hunger while facing substantial budget gaps.
Kate Phillips-Barasso, the Vice President of Policy and Advocacy at Mercy Corps, explained to Axios that the increasing global food insecurity and underfunding will force aid groups to make difficult decisions regarding who receives help and more harshly, who does not.
The Axios report also noted that Africa and the Middle East are the regions that will more likely feel a greater impact following the decision to end the grain deal, as they have mostly relied on Russian and Ukrainian grain.
About 80% of the wheat in those two regions comes from Ukraine and Russia combined. With the already existing crisis, countries such as Yemen, Lebanon, and Egypt are expected to experience a wheat shortage and a steep increase in food prices.
Read more: TQ Samsun last ship to pass grain corridor from Ukraine
International Rescue Committee President, David Miliband, stated that "Any disruption to the global food supplies at a time of heightened need could have devastating consequences."
Despite all that, Axios stressed that the decision would not impact global food prices the same way it did when the war in Ukraine started, given the increase in output by Russia and other suppliers such as Brazil.
Meanwhile, Ukraine has also developed and established alternative export routes via EU land and rivers. This alternative remains problematic as it results in increased costs and faces certain logistical challenges.
Grain deal suspension is 'final', no more talks: Russia
Russian First Deputy Representative to the UN Dmitry Polyansky announced on Monday that Russia's suspension of the Grain Deal is final and as of now, there will be no further talks.
When asked about possible upcoming negotiations, Polyansky said, "Not to my knowledge."
Russia's Ambassador to Belarus, Boris Gryzlov, stated that a note was sent from the embassy to Ukraine via diplomatic connections to notify them that the deal would be terminated on July 18.
This comes after Dmitry Peskov, Kremlin's spokesperson, announced that the agreements underlying the contentious Black Sea Grain Deal have been "terminated", adding that it will return to the agreement as soon as all parties involved take the previously agreed-upon procedures.
'The world needs it'
In response to the announcement, US Ambassador to the United Nations, Linda Thomas-Greenfield, said on Monday that the decision is an "act of cruelty."
"Russia has dealt another blow to the world's most vulnerable, this time by suspending its participation in the Black Sea grain initiative. This is really another act of cruelty," she told reporters, as she called on UN member states to appeal for Russia to reverse its decision because "the world needs it."
"The world needs the Black Sea Grain Initiative and all member states must come together and urge Russia to reverse this decision, resume negotiations to extend, expand and fully implement this initiative."
UN Secretary-General Antonio Guterres said Monday that he deeply regretted Russia's decision but added it would not stop the world body's efforts to "facilitate the unimpeded access" to global markets of food and fertilizers from Ukraine and Russia.
"Looking ahead, our goal must continue to be advancing global food security and global food price stability."
"This will remain the focus of my efforts, taking into account the rise in human suffering that will inevitably result from today's decision," he said.
Guterres lamented that a letter he had sent to Russian President Vladimir Putin last week with a new proposal to keep the initiative alive "went unheeded".
Meanwhile, China's ambassador to the UN, Zhang Jun, expressed hope of finding a common ground to move forward and specifically mentioned that Russia had concerns.
"We still hope that you know, by accommodating the concerns of all parties ... then we can find a package solution," Zhang said.
Read more: Prices of wheat soar after Russia announces grain deal suspension
