Russia's nixing of Ukraine grain deal deepens worries about global food supply

Anti-tank obstacles on a wheat field at a farm in southern Ukraine's Mykolaiv region. The country's grain exports were curtailed this week when Russia pulled out of a deal that allowed grain-laden ships to sail out of Ukrainian ports. (Genya Savilov /AFP via Getty Images)

On July 17 the Russian government announced that it was pulling out of a deal to facilitate the export of millions of tons of grain from Ukrainian ports. The arrangement had been in place since July 2022. The Kremlin's move immediately sparked concern, particularly in food insecure countries. The Kenyan government was quick to denounce the withdrawal as a "stab in the back" for drought-hit nations in the Horn of Africa. U.N. Secretary General Antonio Guterres said that Russia's withdrawal "will strike a blow to people in need everywhere."

Grain prices have been fluctuating since. On Monday morning after the announcement, Chicago wheat futures – a global benchmark for prices – briefly jumped around 3% before falling later in the day. By Wednesday afternoon Russia announced that all ships in the Black Sea bound for Ukrainian ports will be considered potential military cargo starting Wednesday. Wheat futures jumped 9%.