The deal, which allowed safe passage for Ukrainian agricultural exports via the Black Sea, was recently scrapped
The International Monetary Fund (IMF) has issued a warning regarding the termination of the Black Sea grain deal between Russia and Ukraine, stating that it could exacerbate global food insecurity and lead to surging prices, especially in poorer nations. The deal, which allowed safe passage for Ukrainian agricultural exports via the Black Sea, was recently scrapped, impacting food supply to countries heavily reliant on shipments from Ukraine, particularly in North Africa, the Middle East, and South Asia.
The IMF spokesperson highlighted the deal’s importance in ensuring global food security by facilitating grain and fertilizer exports from Ukraine to the international market, thereby mitigating pressure on food prices worldwide. With the deal now discontinued, there are growing concerns about the outlook for food security and the potential risks of increased global food inflation, particularly for low-income countries.
Moscow’s decision to terminate the grain deal was announced due to the other parties’ failure to fulfill their commitments concerning Russia’s agricultural exports. The original agreement was accompanied by a Russia-UN memorandum aimed at easing sanctions and facilitating Russian exports. However, none of the demands outlined in the memorandum have been met so far.
In response to the situation, Moscow stated that it would reinstate the arrangement once its conditions are met. Additionally, Russia expressed its readiness to provide grain to low-income countries most affected by food insecurity, free of charge. The IMF will closely monitor the developments in the region and assess the impact on global food security in the coming days.