Russia's withdrawal from the grain deal with Ukraine

IMF: Russia’s withdrawal from the grain deal with Ukraine could increase global food inflation.

The International Monetary Fund on Wednesday said Russia’s exit from a deal allowing Ukrainian exports via the Black Sea threatens to increase global food insecurity and could drive food prices higher, especially in low-income countries.

A representative for the IMF stated that the international lender would keep a close eye on current events in the area and their effects on food insecurity around the world.

The fund stated that the initiative’s termination “has an impact on the food supply to countries that heavily rely on shipments from Ukraine, in particular in North Africa, the Middle East, and South Asia.” It “worsens the outlook for food security and poses a threat of escalating global food inflation, particularly for low-income countries.”
This week, some members of the Group of 20 criticised Russia’s decision to withdraw from the Black Sea grain deal that the UN had mediated on Monday because it felt that its demands to implement a parallel agreement to relax regulations for its own food and fertilizer exports had not been met.

The Black Sea Agreement, according to the IMF, was crucial in enabling Ukraine to export food, grains, and fertilizer to the rest of the globe. The arrangement assisted in reducing pressure on global food prices, the spokesperson said, along with the lifting of export restrictions and higher-than-anticipated food output in important exporting nations.

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