BLACK SEA GRAIN DEAL

BLACK SEA GRAIN INITIATIVE: - after 1 year of waiver, in 2022 russia is reluctant to allow Ukrainian food to reach global food markets in 2023. The immediate problem is an imminent food crisis around the world & particularly in African countries. According to estimates, 362 million people in 69 countries are at direct risk if the deal falls through.

In the backdrop of Russia-Ukraine war - Since the two biggest grain suppliers are involved in war, world grain supplies face a lot of uncertainity. To provide for unhindered global food supplies & thereby controlling food price volatility the UN, the Russian Federation, Türkiye and Ukraine agreed to safe and secure passage to all food exports from Russia and Ukraine, which according to experts amounts to almost sixty million tonnes.

 

Why is black sea importance for food supply?

Ukraine has been called the breadbasket of Europe because it has approximately one-third of the world’s most fertile soil, which is known as chernozem, or black soil and makes it a major supplier of wheat, barley, sunflower products, and corn to Europe as well as to developing countries such as in the Middle East, Northern Africa and China.

More than 400 million people relied on foodstuffs from Ukraine before Russia invaded Ukraine in February 2022.

Before the war, Ukraine was able to rely on its year-round access to ice-free harbours in the Black Sea to ship grains to nearby markets in the Middle East and Africa.

 

Why is Russia unhappy with the grain deal?

Black sea grain initiative, allowed Ukraine to export almost 50billion dollar worth of food items & thereby threatening Russian security & gaining an unfair advantage in the ongoing war. On the other hand Russian exports are being hindered because of sanctions by western countries & payment related difficulties.