Russia has announced that it will not renew the agreement for the export of grain from Ukraine via the Black Sea.

Russia has announced that it will not renew the agreement for the export of grain from Ukraine via the Black Sea. The decision was shared by the Presidential Office in Moscow. The existing agreement expires today.

Russia Suspends Grain Shipment Agreement

Russia has suspended the agreement for shipping Ukrainian grain via the Black Sea. According to Kremlin spokesperson Dmitry Peskov, once all Russian demands for exporting their own grain are met, Moscow will resume fulfilling the agreement, as reported by Russian media.

The agreement between Russia and Ukraine had been extended several times and officially remained valid until late Monday evening. Peskov emphasized that Russia’s position on the grain agreement was clear even before the recent attack on the Crimean Bridge. The attack did not influence Russia’s decision.

Ukraine’s Restricted Grain Exports

As early as Thursday, Russian President Vladimir Putin spoke about the possibility of suspending Russia’s participation in the agreement until all obligations are fulfilled. In return, Moscow requested easing sanctions on its fertilizer and food exports, including insurance, freight, and financing. Specifically, Russia demanded that its state agricultural bank be exempt from Western sanctions to conduct business.

According to Deputy Government Spokesperson Christiane Hoffmann, Germany is still working towards extending the agreement.

Inspections at Turkish Port

The agreement mediated by the United Nations and Turkey in July 2022 aimed to alleviate the global food crisis by enabling the export of Ukrainian grain through the Black Sea, which is controlled by the Russian fleet.

Ships have been passing through a sea corridor to Istanbul, where the cargo has been inspected by mixed teams from Russia, Ukraine, Turkey, and the United Nations. This requirement was insisted upon by the Russian leadership to prevent arms smuggling.

In 2022, despite the war, Ukraine was able to export over 38 million tons of grain, generating revenues exceeding 8 billion euros. These revenues are crucial for the country’s state budget as it defends itself against the Russian aggressor. However, compared to 2021, sea exports decreased by approximately 23%.

Grain exports are essential for poorer countries. Even exports that do not directly go to countries in the Global South contribute to lower prices in the global market.

According to ARD correspondent Ina Ruck, the suspension of the agreement brings more disadvantages than benefits for Russia. Putin can no longer present himself as a protector ensuring the entry of Ukrainian grain into the world market. Furthermore, Russia risks alienating important partners such as Turkey, as a mediator of the agreement, and China, a significant recipient of the exports.