Russia has pulled out of a humanitarian agreement that had allowed grain shipments to leave Ukraine bound for international markets.
Russia had signed the U.N.-brokered deal in July 2022, known as the “Black Sea Grain Initiative.” The agreement was seen as key to providing much needed grain to impoverished nations and was also viewed as important to keeping global food prices from rising.
But now, Russia has canceled the deal hours before it was due to be renewed. World wheat prices rose 3.5% as news broke that Russia had pulled out of the grain deal with Ukraine.
Beyond grain, the U.N. deal had also allowed for the export of commercial food and fertilizer supplies, including ammonia, from three Ukrainian ports along the Black Sea – Odesa, Chornomorsk and Pivdennyi.
Over the last year, cargo ships had traveled through an agreed upon humanitarian corridor from Ukraine to Istanbul, Turkey, one of the busiest ports in Europe.
Ukraine is ranked by the United Nations as the fifth largest grain exporter in the world. Canada is ranked number two for grain shipments by the international agency.
