News Trending War

Threat to Ships in Ukraine Conflict Causes Soaring Wheat Prices

By 208 0

Wheat prices on the global markets have experienced a sharp rise following Russia’s declaration that it would consider ships heading to Ukrainian ports as potential military targets. This decision came after Moscow withdrew from a UN agreement that guaranteed safe passage for grain shipments through the Black Sea. In recent nights, Russia has launched attacks on Ukraine’s grain facilities in cities like Odesa. The White House has accused Russia of planning to attack civilian ships and then falsely blaming Ukraine for it. As a result of these developments, European stock exchange wheat prices surged by 8.2% to €253.75 per tonne, with corn prices also rising by 5.4%. US wheat futures recorded their highest daily increase since Russia’s invasion of Ukraine in February 2022, jumping 8.5%. President Vladimir Putin has expressed willingness to return to the international grain agreement if certain demands, including the lifting of sanctions on Russian grain and fertiliser sales, are met.

Amid these escalating tensions, Russian air strikes continued in Black Sea coastal cities for three consecutive nights, leading to civilian casualties. The attacks have targeted grain export infrastructure and raised concerns about the safety of shipping routes for essential food supplies. Ukraine’s options for exporting grain by rail are limited, with rail capacity smaller than shipping volumes, and some EU countries in Eastern Europe blocking Ukrainian grain to protect their own farmers.

Analysts have warned that Russia’s threatened escalation could disrupt waterborne grain shipments from the Black Sea, impacting both Russian and Ukrainian exports. Some Ukrainian officials have called on the UK, US, France, and Turkey to provide military convoys and air defenses to protect grain ships heading to Odesa.

The situation has raised concerns about potential impacts on global food security and inflation, particularly in developing countries, leading to social instability, food shortages, and increased migration. Critics accuse Russia of using food supplies as a political tool in its conflict with Ukraine.

Picture Courtesy: Google/images are subject to copyright

News Trending

Russia formally withdraws from the grain contract with Ukraine

By 214 0

Russia has informed the United Nations, Turkey, and Ukraine that it will not extend a crucial grain deal that allowed Ukraine to export grain through the Black Sea. Kremlin spokesperson Dmitry Peskov stated that the agreements had effectively ended on Monday. The deal permitted cargo ships to pass through the Black Sea from the Ukrainian ports of Odesa, Chornomorsk, and Yuzhny/Pivdennyi. However, Russia stated that it would reconsider the agreement if certain conditions were met.

Russian President Vladimir Putin had previously expressed dissatisfaction with parts of the deal, claiming that the export of Russian food and fertilizers had not been fulfilled. He specifically mentioned that grain had not been supplied to poorer nations, which was a condition of the agreement. Russia also complained about Western sanctions limiting its agricultural exports and repeatedly threatened to withdraw from the deal.

On Monday, the Russian foreign ministry reiterated these concerns, accusing the West of “open sabotage” and prioritizing commercial interests over humanitarian goals. Turkish President Recep Tayyip Erdogan expressed his belief that Putin still wanted to continue the agreement and stated that they would discuss its renewal during their upcoming meeting.

The grain deal is significant because Ukraine is one of the world’s largest exporters of sunflower, maize, wheat, and barley. Following Russia’s invasion in February 2022, Ukrainian ports were blockaded, trapping 20 million tonnes of grain and causing a sharp increase in global food prices. The blockade also posed a threat to food supplies in Middle Eastern and African countries heavily reliant on Ukrainian grain.

Nikolay Gorbachev, the president of the Ukrainian Grain Association, mentioned that alternative methods of exporting grain had been identified, including through Danube River ports. However, he acknowledged that these ports would be less efficient, leading to reduced grain exports and increased transportation costs.

Western leaders swiftly criticized Russia’s decision, with EU Commission President Ursula von der Leyen condemning it as a “cynical move” and emphasizing the EU’s efforts to ensure food security for vulnerable populations.

Russia’s announcement coincided with Ukraine claiming responsibility for an attack on a bridge in Crimea that resulted in the deaths of two civilians. Peskov stated that Russia’s decision to let the deal expire was unrelated to the attack, as President Putin had already declared the position before the incident.

Picture Courtesy: Google/images are subject to copyright