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Russia resumes participation in grain deal

After first pulling out of the agreement, Russia resumed its participation in the grain deal after obtaining sufficient written guarantees from Ukraine to not use the corridor for strikes against Russia.

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Freepik

November 3, 2022


The grain export deal, which was brokered by the UN and Turkey in July, expires on November 19 and efforts are being made to extend the agreement. On October 29, Moscow pulled out of the arrangement saying it could not guarantee the safety of civilian ships crossing the Black Sea because of a drone attack on its fleet there.

In a statement on October 31, Russia's defense ministry said that, with the help of the United Nations and Turkey, it had obtained sufficient written guarantees from Ukraine that it would not use the secure shipping corridor or its designated Ukrainian ports for strikes against Russia, resuming its participation in the grain deal.

On November 2, President Vladimir Putin reserved Russia's right to withdraw again from an international agreement allowing Ukraine to export grain via the Black Sea, Reuters reported. If Russia did so, however, Putin said it would not impede shipments of grain from Ukraine to Turkey.

According to the UN, 9.8 million tonnes of grain commodities were shipped from August 1 to November 1 through the Black Sea since the deal was agreed with corn and wheat among the main commodities and Spain, Turkey, China and Italy among the main destination countries.

Grain prices have been volatile over the past few months amid speculation over the fate of the deal. U.S. wheat futures jumped 6%, hitting a two-week high, and corn rose 1.6% on October 31 as Russia's withdrawal from a Black Sea export agreement raised concerns over global supplies, Reuters reported. As Russia rejoins the grain deal, wheat futures drop again.

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