Russia terminates the Black Sea Grain Initiative: What’s next for Ukraine and the world?
- Impact Area
The deal, put in place almost a year before, was scheduled for its fourth renewal. Within hours of the announcement, Russia launched a missile attack on the port of Odesa. The following day, Russian missile attacks on key Ukraine grain handling facilities sent wheat futures prices to their largest one-day rise since February 2022. A cargo insurer operating under the agreement reportedly suspended its coverage of Ukraine Black Sea grain shipments.
The suspension drew international dismay. United Nations Secretary-General António Guterres said halting the grain exports, including food assistance shipments, “will strike a blow to people in need everywhere.” A top Kenyan official called it a “stab in the back.” Meanwhile, Russia justified the action complaining that related discussions on reopening the Tolyatti-Pivdennyi ammonia pipeline and allowing Russian agricultural banks to use the SWIFT banking system to finance food and fertilizer purchases by developing countries had stalled.