Grain corridor axed

On 17^th July 2023, Russia axed the grain corridor.

“I deeply regret the decision by the Russian Federation to terminate the implementation of the Black Sea Initiative – including the withdrawal of Russian security guarantees for navigation in the northwestern part of the Black Sea.” – UN Secretary-General António Guterres.

📆 On 17^th July 2023 Russia pulled out of the Black Sea Initiative and grain prices surged in response.

🚢Over 30 million tons of grains and foodstuffs have been exported since the corridor opened a year ago.

⚓Shipments were made from the ports of Odesa, Chornomorsk and Yuzhny/Pivdennyi.

🌍Exports went to 45 countries: 46% to Asia, 40% to Western Europe, 12% to Africa and 1% to Eastern Europe.*

🌾Commodities: corn (51%), wheat (27%), sunflower meal (6%), sunflower oil (5%), barley (4%), rapeseed (3%), and others (4%).*

⚠ Russia has briefly suspended the deal previously and there are suggestions that the current move to quit the initiative could be temporary.

❓But what if it is long-term, how can grains be exported? Commodities can be rerouted across land to ports in neighbouring countries – a more costly and lengthy route.

* Source: Office of the UN Coordinator for the Black Sea Grain Initiative

Useful reading

• Reuters: Explainer: What happens if Black Sea grain corridor deal is not extended?
• FT: Russia pulls out of Black Sea grain deal
• UN: Data from the Black Sea Grain Initiative Joint Coordination Centre

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