The fallout from Russia’s exit from the Black Sea grain deal could affect millions of the poorest around the world, the UN warns. However, it may not affect prices in South Africa, at least for now.
In a media briefing in New York on Monday, UN secretary-general Antonio Guterres warned Moscow’s decision would impact the poorest. It would jeopardise relief efforts in war-torn countries like Yemen, he said.
“Ultimately, participation in these agreements is a choice. But struggling people everywhere and developing countries don’t have a choice. Hundreds of millions of people face hunger and consumers are confronting a global cost-of-living crisis. They will pay the price,” said Guterres.
The Kremlin announced Moscow’s decision not to extend its participation in the UN- and Turkiye-brokered Black Sea Grain Initiative. Kremlin spokesperson Dmitry Peskov cited “agreements concerning Russia” not being implemented for its decision to quit the deal.
Signed by the warring parties, Ukraine and Russia, in Istanbul last July, the initiative was to ensure a continuation of grain exports during the war. More than 32 million tonnes were shipped while it was in effect, reported Al Jazeera.
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Ripple effect of Russia’s exit from the Black Sea deal
Guterres said the World Food Programme (WFP) was able to ship north of 725,000 tons to support humanitarian operations, “relieving hunger in some of the hardest hit corners of the world, including Afghanistan, the Horn of Africa and Yemen”.
He continued, “With the decision to terminate the Black Sea Initiative, the Russian Federation also terminated its commitment to facilitate the unimpeded export of food, sunflower oil, and fertilisers from Ukrainian controlled Black Sea Ports”.
Meanwhile, Turkiye’s president Recep Erdogan, whose country played a key role in brokering the deal last year, said he hoped it could be revived. The two nations’ foreign ministers are expected to hold discussions on the deal later.
“I hope that with this discussion, we can make some progress and continue on our way without a pause,” Erdogan told reporters on Monday.
The effect of Russia’s withdrawal from the deal on prices across the world is yet to be seen. For now, economists don’t suspect it would have an immediate effect on local food prices.
Julie Alli spoke to political analyst Thembisa Fakude about the Black Sea grain deal, the upcoming BRICS Summit and more around Russia. Listen to the full discussion here:
