Russia Suspends Ukraine Grain Deal, Accusing Kiev of Attacking Black Sea Fleet

Russia's U.N. ambassador, Vassily Nebenzia, accused Ukraine of using the Black Sea shipping corridor to get grain to world markets "for military and sabotage purposes" against its fleet, claiming this is why it suspended implementation of the deal. Nebenzia warned that Russia will not allow the unimpeded passage of vessels without its consent, which is currently taking place. In response, the U.N. humanitarian chief, Martin Griffiths, rejected Nebenzia's claim, stating that the shipping corridor for civilian vessels was not open at 4 a.m. on the day of the alleged attack and only operates when ships move down the corridor.

Key Takeaways:

• Russia suspended implementation of the Ukraine grain deal, citing Ukraine's alleged use of the Black Sea shipping corridor for military purposes against its fleet.
• Ukraine's U.N. ambassador was accused of carrying out "massive aviation and sea strikes" on Russia's Black Sea fleet and infrastructure in Sevastopol on October 29, allegedly under the cover of the humanitarian grain corridor.
• The U.N. humanitarian chief rejected Russia's claim, stating that the shipping corridor for civilian vessels was not open at 4 a.m. and only operates when ships move down the corridor.
• 86 outbound ships have left Ukraine ports and are awaiting inspection in the Bosphorus, carrying nearly 2 million tons of grain as part of a 9 million-ton export deal.
• The grain deal, which lasts for 120 days, will automatically be extended on November 18 unless objections are raised.
• Russia's suspension of the deal has led to uncertainty over its continuation, causing wheat futures to rise by over 6% on Monday.
• The U.N. Conference on Trade and Development's secretary-general, Grynspan, stated that the grain agreements have had a major impact, citing a 16% decline in the U.N. Food and Agriculture Organization's Food Price Index over six months.
• The secretary-general also warned that fertilizer prices are still 2 1/2 times their 2019 levels, leading to potential crop production issues.

Statistics:

• 86 outbound ships have left Ukraine ports and are awaiting inspection in the Bosphorus, carrying nearly 2 million tons of grain.
• 9 million tons of grain are to be exported under the deal.
• The wheat price index has declined by 16% over six months.
• Fertilizer prices are still 2 1/2 times their 2019 levels.
• Over 100 million people may have been prevented from falling into poverty due to the decline in food prices.

Sources:

• Vassily Nebenzia, Russia's U.N. ambassador
• Martin Griffiths, U.N. humanitarian chief
• Grynspan, secretary-general of the U.N. Conference on Trade and Development
• Reuters
• U.N. Food and Agriculture Organization
• World Bank