What happens if the Black Sea grain corridor agreement in Ukraine is not extended?

Published 2023년 7월 11일

Tridge summary

The current deal allowing Ukraine to export grain across the Black Sea is set to expire on July 17, and there are concerns that it may collapse as Russia sees no reason for an extension. Ukraine's grain exports have been crucial in balancing global food prices during the war, with grain from Ukraine also playing a direct role in aid programs. While the situation is better than during the initial outbreak of war, if the deal runs out, prices for staple foods could rise, although increased grain supplies from other producers such as Russia and Brazil may help mitigate the impact.

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

Original content

A deal allowing Ukraine to export grain across the Black Sea expires on July 17 and, with Moscow saying it sees no reason for an extension, there are fears it could collapse. WHY IS IT IMPORTANT? Ukraine is a major producer of grains and oilseeds and the disruption to their exports with the outbreak of war has pushed global food prices to record levels. The current deal, struck in July 2022, about five months after the war broke out, has helped bring prices down and ease the global food crisis. Grain from Ukraine also played a direct role with 725,200 tonnes or 2.2% of supplies sent through the corridor used by the United Nations World Food Program (WFP) in aid to countries such as Ethiopia, Somalia and Yemen. See also: Russia Rejects Bank Commitment as Black Sea Grain Expiration Approaches WHAT HAPPENS IF IT RUNS OUT? Prices for some staple foods would likely rise, but the situation is better than in the months after the outbreak of war due to increased grain supplies from other ...

Source: Agrolink