Ukraine and Russia are both major global suppliers of wheat, barley, sunflower oil, and other food staples used by developing countries.
The Black Sea Grain Deal
Russia withdrew from the UN-mediated agreement on 17th July, claiming that its demands for sanctions relief on its own grain and fertilizer exports had not been met. Moscow also expressed concern that not enough grain was reaching impoverished countries.
Russia has halted a groundbreaking wartime agreement that would have allowed grain to flow from Ukraine to countries in Africa, the Middle East, and Asia, where hunger is a growing threat and high food prices have pushed more people into poverty.
The suspension marks the end of an agreement reached by the United Nations and Turkey last summer to allow food shipments from the Black Sea region after Russia's invasion of its neighbor exacerbated a global food crisis. The initiative is credited with lowering soaring wheat, vegetable oil, and other global food commodity prices.
Agricultural Exports From Ukraine
The UCAB agricultural business association reported on Tuesday that while grain exports show a significant decline, Ukrainian vegetable oil exports in July totaled 549,400 metric tons, an increase of 7% from a month earlier. Sunflower oil exports made up 92% of the volume, according to UCAB. Ukraine was the world's top exporter of sunflower oil before Russia’s invasion last year.
According to a report released on Monday by the Ukrainian Ministry of Agriculture, the nation's grain exports for the first month of the new season increased to 2.16 million tons from 1.61 million in July 2022. However, the association reported that the volume of grain exported in July was 40% lower than in June.
The grain corridor was suspended on July 18 and had low activity even before the term's expiration, according to UCAB, which is the main cause of these underwhelming export results.
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