Espreso. Global

Food insecurity to worsen after Russia pulls out from grain deal – White House 

17 July, 2023 Monday
22:40

The White House has condemned Russia's withdrawal from the grain deal, which played a crucial role in lowering global food prices

This is reported by CNN.

According to Adam Hodge, a spokesman for the US National Security Council, Russia's decision to suspend its participation in the grain deal will negatively affect food security around the world.

"Russia’s decision to suspend participation in the Black Sea Grain Initiative will worsen food insecurity and harm millions of vulnerable people around the world. The Black Sea Grain Initiative has been critical to bringing down food prices around the world, which spiked as a result of Russia’s brutal and unprovoked invasion of Ukraine,” Adam Hodge said in a statement.

He called on Russia to immediately reverse its decision.

"Preventing this grain from getting to markets will harm people around the world, and indeed we are already seeing a spike in global wheat prices as a result of Russia suspending its participation in the Initiative. We urge Russia to immediately reverse its decision," he added. 

What is known about the grain deal

The agreement, known as the Black Sea Grain Initiative, was concluded between Russia and Ukraine with the mediation of the UN and Turkey in July 2022 in Istanbul. It has since been extended several times.

In January, the Ministry of Infrastructure said that as a result of Russian actions in the Bosphorus, the world loses millions of tons of Ukrainian food every month. The occupiers are hampering the inspection of ships that export grain to third world countries.

In March 2023, the Russian Federation informed the parties that the agreement would be extended for only 60 days instead of 120. These agreements were due to expire on May 18.

To extend it, the Russians demanded:

  • reconnecting Rosselkhozbank to SWIFT
  • resumption of supply of agricultural machinery, spare parts and service
  • lifting restrictions on insurance and reinsurance plus lifting the ban on access to ports
  • resumption of the Togliatti-Odesa ammonia pipeline
  • unblocking foreign assets and accounts of Russian companies related to the production and transportation of food and fertilizers.

On May 17, the grain deal was extended for 60 days. The Russians' demands were not met.

Doubts about the continuation of the grain deal were also voiced in the UK on July 4.

On June 5, the Russian Federation said it saw no prospects for extending the agreement in July, and on June 22, the Ukrainian Foreign Ministry said it did not see the Russians' readiness to continue the grain initiative.

On June 23, Ukraine announced it would participate in the construction of a grain terminal in Nigeria.

On July 5, the UN announced its readiness to send a representative to Moscow to "save the grain deal."

Turkish President Recep Tayyip Erdogan said on July 8 that his country is working on extending the grain deal for two years.

UN Secretary-General Antonio Guterres has offered Russian President Putin to extend the grain deal in exchange for reconnecting Rosselkhozbank to SWIFT. The Kremlin had demanded this earlier

On July 12, Turkey’s Erdogan said that he had received proposals from Putin to extend the grain deal.

Ukraine is looking for alternative ways to supply grain to Africa, Europe and Asia.

 On July 13, Putin said Russia will extend the grain deal when its demands are met. 

On July 17, Russian presidential spokesman Dmitry Peskov announced the actual termination of the grain deal. At the same time, Turkish President Recep Erdogan announced his intention to discuss the extension of the grain deal with Putin.

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