Russia Quits the Black Sea Grain Deal 

A deal allowing the safe Black Sea export of Ukraine’s grain for the past year expired on Monday after Russia quit and warned it could not guarantee the safety of ships in a move the United Nations said would “strike a blow to people in need everywhere,” Reuters reports.

Russia told the U.N. shipping agency – the International Maritime Organization (IMO) – that its “guarantees for the safety of navigation” had been revoked and that “proactive necessary actions and response measures to neutralize threats posed by the Kiev regime in the area will be taken.”

U.S. wheat and corn futures slumped after earlier hitting two-week highs on Russia’s announcement. Analysts said there are still expectations the grain deal may be renewed and the markets were well aware of the risk for it to expire.

The Black Sea deal was brokered by the U.N. and Turkey in July last year to combat a global food crisis worsened by Russia’s February 2022 invasion of Ukraine. Ukraine and Russia are among the world’s top grain exporters.

Russia has complained that under the deal not enough grain has reached poor countries. But the U.N. argued the arrangement has benefited those states by helping lower food prices more than 20% globally.

Russia’s Deputy U.N. Ambassador Dmitry Polyanskiy told the council there had been no progress on improving Russia’s exports and accused Ukraine of using “the cover of the open maritime corridor to wage provocations and attacks against Russian civilians and military objects.” He did not provide evidence.

To convince Russia to agree to the Black Sea deal, a three-year memorandum of understanding was struck in July 2022 under which U.N. officials agreed to help Russia get its food and fertilizer exports to foreign markets.