Following an attack on the Russian Black Sea fleet’s base in the port city of Sevastopol in occupied Crimea, Moscow has suspended its participation in the Black Sea grain initiative. This was a deal to allow grain ships to depart safely from Ukrainian ports which was brokered by the UN and Turkey in July and which became operational on August 1. Since then, an estimated 9.5 million tonnes of grain and other foodstuffs have been moved out of Ukraine under the deal.
Pulling out of the grain deal, however, has consequences far beyond Ukraine and again raises the spectre of a worsening global food crisis. Global prices for wheat and corn rose by up to 6% in response to the Russian announcement. The decision also affected more than 200 ships involved in getting Ukrainian grain to world markets through a safe sea corridor from the Ukrainian ports of Chornomorsk, Odesa and Pivdennyi to Turkey.
The combined and linked problems of supply shortages and rising prices is particularly problematic for low-income countries. According to the International Rescue Committee (IRC), the war in Ukraine has altered “the global patterns of food production and supply”. This has led to a situation in which, says the IRC, “inflation in low-income countries has surged to almost 90%, with 345 million people estimated to experience acute food insecurity this year”.
