Russia Pulls Out of the Ukraine Grain Deal, Hurting the Global Food Economy

Russia Pulls Out of the Ukraine Grain Deal, Hurting the Global Food Economy

The grain deal between Russia and Ukraine was introduced in July 2022. Due to Russia’s navy blockading Ukraine’s grain exports via the Black Sea, 20 million tonnes of grain were trapped. This not only caused global food prices to rise but also created food shortages for Middle Eastern and African countries, who relied on Ukraine for grain. Ukraine exported 57% of their grain to developing countries and 43% to developed countries over the past year (Source 4). Italy, Spain, China, and Turkey are all dependent on Ukraine’s grain. Additionally, “the UN says that Ukraine has supplied 725,000 tonnes of grain to the World Food Programme (WFP), which was sent as humanitarian aid to Afghanistan, Djibouti, Ethiopia, Kenya, Somalia, Sudan and Yemen” (Source 4). Ukraine supplied 80% of all of its grain to the WFP. In response to Russia’s attack on the wheat supply, there have been multi-country conferences to address global food security, in the UN and the G7. The US increased their contributions to the WFP by $3.4 billion and gave millions to other programs. 

The grain deal, brokered by the UN and Turkey, permitted Ukrainian cargo ships to traverse the Black Sea along a 310 nautical mile path. After the cargo reached the Bosphorus Strait, the Russian navy would check the Ukrainian ships for weapons. “Almost 33 million tonnes of grain were shipped from Ukraine under the deal, and world food prices declined by roughly 20% as a result, according to the UN's Food and Agriculture Organization” (Source 4).

Despite the established agreement, Russia pulled out of the grain deal on July 17th, 2023. Russia has launched a series of aerial attacks on Ukrainian ports, ruining 60,000 tonnes of grain. The Russian defense ministry also recognizes any Ukrainian ships in the Black Sea as military targets. The effect is an increase of global food prices and 50 million starving people across Somalia, Kenya, Ethiopia and South Sudan. 

“When the UN brokered the deal, it told Russia it would help it increase its exports of grain and fertilizers” (Source 4). However, when Russia did not receive what was promised, they refused to renew the deal. Due to this, Ukraine’s options of exporting grain are limited and expensive. 

The inability to export Ukraine’s wheat has negatively affected the global economy, as well as its own. Wheat is Ukraine's most valuable export, responsible for over 41% of its total exports. The economy contracted by over 30% in 2022 due to these losses.

It is clear that Russia’s actions are aimed to hinder Ukraine in the war without regard for global consequences and humanitarian concerns. The contraction of wheat supply has increased food insecurity for millions around the world. Despite other countries’ attempts to aid the food crisis, the attack on Ukraine’s grain supply is a devastating blow to the world’s food supply. 

Sources

  1. https://www.cnn.com/2023/07/17/europe/russia-ukraine-grain-deal-intl/index.html#:~:text=Russia%20has%20 suspended%20on%20 Monday,where%20 millions%20are%20 going%20 hungry
  1. https://www.consilium.europa.eu/en/infographics/ukrainian-grain-exports-explained/#:~:text=Share%20of%20grain%20export%20by%20country%20wealth&text=65%25%20of%20the%20wheat%20was,and%2049%25%20to%20developed%20countries
  2. https://www.csis.org/analysis/russia-ukraine-and-global-food-security-one-year-assessment

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