Moscow halts grain deal in what UN calls a global blow to people in need - CNA

The grain deal was hailed as preventing a global food emergency when it was brokered by the United Nations and Türkiye last year.

Global commodity food prices rose on Monday, though the increase was limited, suggesting traders did not yet anticipate a severe supply crisis.

Turkish President Tayyip Erdogan, the grain deal's sponsor, said earlier on Monday that he still believed Russian President Vladimir Putin wanted it to continue.

Western countries say Russia is trying to use its leverage over the grain deal to weaken financial sanctions, which do not apply to Russia's agricultural exports.

European Commission President Ursula von der Leyen described Russia's suspension of the agreement as a "cynical move" and said the EU would continue to try to secure food for poor countries.

WITHOUT RUSSIA?

Russia has agreed three times in the past year to extend the Black Sea deal, despite repeatedly threatening to walk out. It suspended participation after an attack on its fleet by seaborne Ukrainian drones in October, leading to a few days when Ukraine, Türkiye and the United Nations kept exports going without Moscow.

Denys Marchuk, deputy head of the Ukrainian Agrarian Council, the main agribusiness organisation in Ukraine, said seaborne exports might proceed again without Russian agreement.

"If there will be safety guarantees from our partners, then why not conduct the grain initiative without Russia's participation?" he told Reuters.

Any such resumption of without Russia's blessing would probably depend on insurers. Industry sources told Reuters they were studying whether to freeze their coverage.

"The (key) question is whether Russia mines the area which would effectively cease any form of cover being offered," one insurance industry source said.

The balance of sea power has shifted since Russia imposed its blockade in the war's early months. Kyiv, with no comparable fleet of its own, managed to sink Russia's flagship, recapture the Snake Island outcrop overlooking shipping lanes, and target Russia's Black Sea Fleet in port with drones.

The latest blast on Russia's bridge to Crimea follows months of Ukrainian strikes on Russian supply lines as Kyiv pursues a counteroffensive to drive Russian forces out of its territory.

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2023-07-17 13:12:00Z
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