The risk of a fresh uptick in global food inflation emerged Monday after President Vladimir V. Putin pulled Russia out of the Black Sea grain deal, sending wheat prices surging and exposing vulnerable countries in Africa and the global south in particular to the prospect of a new round of food insecurity.
Chicago wheat futures, a barometer for global prices, jumped more than 4 percent as the Kremlin’s move once again jeopardized a key trade route to global markets for grain from Ukraine, one of the world’s major bread baskets.
“It will hurt specific countries dependent on these exports,” Mr. Ash said.
But beyond that, “it shows how weak Putin is after the Wagner coup: He is now desperate to take any bit of leverage he can.”The Black Sea Grain Initiative was struck a year ago to alleviate a global food crisis after Russia’s invasion of Ukraine, when Russia blocked ships from carrying the country’s grain out of its ports on the Black Sea.
Those blockages swiftly sent grain prices soaring to record highs.
Persons:
Vladimir V, Putin, Mr, Timothy Ash, Ash, Wagner, blockages
Organizations:
Wagner, BlueBay, Management, Initiative
Locations:
Russia, Africa, Ukraine, London, “