The suspension of the deal sent wheat prices up about 3% in Chicago trading, to $6.81 a bushel, which is still about half what they were at last year’s peak.
Russia on Monday halted a breakthrough wartime deal that allowed grain to flow from Ukraine to countries in Africa, the Middle East and Asia where hunger is a growing threat and high food prices have pushed more people into poverty.
Kremlin spokesman Dmitry Peskov said the Black Sea Grain Initiative would be suspended until demands to get Russian food and fertilizer to the world are met. An attack Monday on a bridge connecting the Crimean Peninsula to Russia was not a factor in the decision, he said.
“When the part of the Black Sea deal related to Russia is implemented, Russia will immediately return to the implementation of the deal,” Peskov said.
Russian representatives at the operation center for the initiative were more definitive, calling the decision “a termination,” according to a note obtained by The Associated Press. Russia has complained that restrictions on shipping and insurance have hampered its agricultural exports, but it has shipped record amounts of wheat since last year.
The suspension marks the end of an accord that the U.N. and Turkey brokered last summer to allow shipments of food from the Black Sea region after Russia’s invasion of its neighbor worsened a global food crisis. The initiative is credited with helping reduce soaring prices of wheat, vegetable oil and other global food commodities.
