Russia has terminated an agreement that allowed for Ukraine grain movement through the Black Sea, claiming its own agriculture products are not being allowed through the trade corridor.
The deal, originally brokered by Turkey, was extended earlier this year to allow for agriculture product movement out of Ukraine. Grain shipments through the region were largely being sent to developing countries, and the cancellation of the deal has the United Nations sounding an alarm on the impacts this could have on food insecurity.
World wheat prices increased slightly on the news earlier Monday, July 17, but drifted back down as the day went on.
The grain movement deal included a clause that all vessels using the ports and shipping lanes would be subject to joint inspections, assuring that only grain and agricultural goods were on board.
Prior to this cancellation, Ukrainian and U.S. officials had reported a significant slow down in the number of vessels being allowed through the Black Sea.
The Associated Press reports grain shipments dipped to 1.3 million metric tonnes in May, down from 4.2 million in October, 2022, but that exports expanded in June to a bit over two million metric tons, thanks to larger ships able to carry more cargo.