Russia warned on Wednesday that it would consider any ship sailing around Ukrainian ports a military target, days after Moscow pulled out of a yearlong deal that had enabled Kyiv to export its grain across the Black Sea despite a wartime blockade.
Russia’s moves have profound implications for the export of Ukraine’s grain, a commodity vital for its own economy and world grain markets.
Here’s a look at alternative options for Ukraine to export its grain:What is the immediate impact of Russia’s warning?
Global grain prices rose sharply following the announcement, but they remained lower than the prices when Russia launched its full-scale invasion of Ukraine in February 2022.
One reason that prices did not rise further is that Ukraine’s grain exports under the Black Sea Grain Initiative had already slowed to a trickle in the days before Russia pulled out of the deal on Monday, according to Sal Gilbertie, head of Teucrium, a U.S.-based investment advisory firm.
Persons:
Sal Gilbertie
Organizations:
Ministry of Defense, Initiative
Locations:
Russia, Moscow, Ukraine, U.S