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Russia Stops Ukraine Grain Deal, Shaking World Food Markets

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Moscow, which has repeatedly complained that the U.N.-brokered agreement is one-sided in Ukraine’s favor, said it could return to the deal if its demands were met.
Russia said on Monday it was withdrawing from a wartime agreement to allow grain exports from Ukraine through the Black Sea until its demands to loosen sanctions on its own agricultural exports were met, upending a deal that has helped stabilize global food prices and alleviate shortages in parts of Africa and the Middle East.
The agreement, known as the Black Sea Grain Initiative, was struck a year ago, brokered by the United Nations and Turkey, to alleviate a global food crisis after Russia’s full-scale invasion of Ukraine. Russia had blockaded Ukrainian ports, blocking ships from carrying its grain and sending global prices soaring to record highs. The deal has been extended three times, most recently in May. The latest extension expired on Monday.
The United Nations’ secretary general, António Guterres, said he was “deeply disappointed” by Moscow’s decision, and that millions of people facing hunger, as well as consumers confronting a cost-of-living crisis, would “pay a price.” He also said he had sent proposals last week to President Vladimir V. Putin of Russia to facilitate Moscow’s demands. Mr. Putin never responded directly, a U.N. spokesman said.
Russia has repeatedly complained about the agreement, which it calls one-sided in Ukraine’s favor. Moscow has said that Western sanctions, imposed because of Moscow’s devastating war, have restricted the sale of Russia’s agricultural products, and Moscow has sought guarantees that free up those exports.
In April, Russia’s Foreign Ministry also listed other demands to renew the grain deal: reconnect the state-owned Russian Agricultural Bank to the international SWIFT messaging service that is critical for cross-border payments; lift restrictions on maritime insurance and on the supply of spare parts used in agricultural machinery; end sanctions against fertilizer companies and the people linked to them; and restore an ammonia pipeline that crosses Ukraine.
The Kremlin’s spokesman, Dmitri S. Peskov, who announced on Monday that the Black Sea grain agreement was “halted,” said, “As soon as the Russian part is fulfilled, the Russian side will immediately return to the implementation of that deal.”
Russia’s announcement came hours after a deadly attack on the Kerch Strait Bridge linking the occupied Crimea Peninsula to mainland Russia. Mr. Peskov said the decision to suspend the grain deal was not connected to the attack.
Ukraine is one of the world’s major exporters of wheat, corn, sunflower seeds and vegetable oil. It has exported 32.9 million tons of grain and other food under the initiative, according to U.N. data. Under the agreement, ships are permitted to pass by Russian naval vessels that kept other vessels from using Ukraine’s ports since the start of Russia’s war. The ships are inspected off the coast of Istanbul, in part to ensure they are not carrying weapons.

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