Earlier this week, the UN-brokered deal, which facilitated safe passage for Ukrainian agricultural exports via the Black Sea, was scrapped by Russia and Ukraine.
An IMF spokesperson, as cited by Reuters, remarked, “The discontinuation of the initiative impacts the food supply to countries that rely heavily on shipments from Ukraine, in particular in North Africa, the Middle East, and South Asia. It worsens the food security outlook and risks adding to global food inflation, especially for low-income countries.”
The spokesperson emphasized the deal’s significance in promoting global food security by facilitating grain and fertilizer exports from Ukraine to the international market, thereby alleviating pressure on global food prices. The IMF assured that it would closely monitor the regional situation and any subsequent impact on global food security.
Moscow declared its decision to terminate the grain deal on Monday, citing the failure of other parties to fulfill their commitments regarding Russia’s agricultural exports.
The original agreement also involved a Russia-UN memorandum aimed at easing sanctions affecting Russian exports. This included demands such as reconnecting Russia’s agricultural lender, Rosselkhozbank, to the SWIFT interbank messaging system, enabling deliveries of spare parts for agricultural machinery, and lifting restrictions on insurance and logistics. As of now, none of these demands have been met.
Kremlin Spokesman Dmitry Peskov stated that Moscow would immediately resume the arrangement once its conditions are fulfilled. He further added that Russia is prepared to supply grain to low-income countries most impacted by food insecurity at no cost.