Financial Times (UK) published an article on Russia’s withdrawal from the Black Sea Grain Initiative that could have ‘catastrophic consequences’ for poorer countries bringing in Lebanon as an example. Reliant on Ukraine for up to 60 percent of its wheat, Lebanon acutely felt the impact of Russia’s Black Sea blockade, but shortages were eased after the UN-backed initiative started in July.
Grain prices, which initially jumped after Russia’s move, eased on Tuesday, with wheat trading on the Chicago Board of Trade at $8.73 a bushel. However, this is still 50 percent higher than the 2019-21 average. David Laborde, a senior research fellow at the International Food Policy Research Institute, explains that any decline in grain flows would be painful for countries such as Turkey, Lebanon, Sudan, and Yemen. “This will exacerbate food insecurity and political tensions in these countries,” said Laborde.
