Home Business Cloud Russia stops grain deal, denies link to Ukraine blamed bridge attack

Russia stops grain deal, denies link to Ukraine blamed bridge attack

Russia has announced that it is halting its participation in a UN-brokered deal allowing Ukrainian grain to be exported through the Black Sea.

Russia has announced that it is halting its participation in a UN-brokered deal allowing Ukrainian grain to be exported through the Black Sea. This decision comes shortly after Russia accused Ukraine of attacking the Crimean Bridge, resulting in the death of two individuals and injuring their daughter. The bridge is a critical route for Russian troops fighting in Ukraine and a significant project inaugurated by President Vladimir Putin.

The Black Sea grain deal, facilitated by the United Nations and Turkey, aimed to address the global food crisis exacerbated by Russia’s invasion of Ukraine. However, Russia claims that the agreement’s provisions concerning their country had not been fulfilled, leading to the termination of its effect.

Russian President Putin had expressed his intention to suspend Russia’s participation in the deal until its conditions were met. The deal was established in July 2022 and also included a separate three-year agreement to assist Russia in exporting food and fertilizer to foreign markets.

Russia and Ukraine are major players in the agricultural markets, being top producers of various commodities such as wheat, barley, maize, rapeseed, and sunflower products. Russia is also dominant in the fertilizer market.

Despite the suspension of its participation in the grain deal, Russia maintains that the decision is not related to the recent bridge attack. The incident has raised tensions between the two countries, with Russia notifying Turkey, Ukraine, and the UN about its stance against extending the agreement.

The situation has also affected the Chicago Board of Trade’s wheat prices, with the most active wheat contract experiencing a significant increase.

Following the alleged attack on the Crimea Bridge, Russia accused Ukraine of orchestrating the incident. However, Ukrainian military sources suggested that it might be a provocation by Russia itself. In the past, Russia blamed Ukraine for a bridge attack in October, leading to strikes against Ukrainian cities in retaliation. The current attack has further complicated the relationship between the two nations.

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