Higher global wheat price looms as UN and Russia deal uncertain

Published 2023년 5월 3일

Tridge summary

Russia is threatening to allow the United Nations-brokered Grain Initiative deal, which enables grain passage along the Black Sea, to expire on May 18 if the US and European Union do not lift sanctions on Moscow. This could result in increased wheat prices in Kenya, as the country relies heavily on imports, especially from Ukraine and Russia, which are a significant portion of the global wheat supply. The expiry of the deal could also have serious implications for other countries that rely on imports to cover their wheat deficit. The situation is further complicated by the SWIFT system's suspension of Moscow, affecting transactions and payments.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Kenya is staring at elevated wheat prices in the coming months should Russia fail to renew a United Nations-brokered deal on grain passage along the Black Sea this month (May). Russia said it would not renew the Grain Initiative deal, first reached last year if the US and European Union did not lift the sanctions they have slapped on Moscow. The current deal, which allows grain from Ukraine to pass through the Black Sea Channel, is due to expire on May 18. But Russia has repeatedly said it will not permit the deal to be extended unless the West removes obstacles to Russian grain and fertiliser exports. Moscow has raised concerns that restrictions on its payments, logistics and insurance industries imposed over its military actions in Ukraine, restricting it from exporting its grains and fertilisers. “The deal is not a buffet you can pick and choose from,” Russian Foreign Ministry spokeswoman Maria Zakharova told. One of Russia’s main demands in negotiations is the reinstatement of ...

Source: UkrAgroConsult