Russia resumed participating in the Black Sea Grain Export Agreement four days after suspending it due to an alleged Ukraine attack on Russian ships in the Black Sea. Reuters says that brought immediate relief from pressure on food prices and eased worries over a renewed global food shortage.
The United Nations, a key sponsor in the deal to help free up Ukrainian grain exports, says Moscow is asking for follow-up on the parts of the deal intended to help Russian food and fertilizer exports. Russian officials want more accomplished to make sure the country can export its enormous food and fertilizer output despite Western sanctions.
Russia’s agricultural exports don’t specifically fall under sanctions imposed by the U.S., European Union, and others, but they’re impeded by restrictions on its financial, logistical, and insurance sectors.
The initiative was agreed to in July for 120 days. The export deal expires on November 19.
Grain markets have been volatile this entire week due to the uncertainty surrounding the situation. Wheat in particular has suffered sharp losses on the week.
