The situation on the grain market could deteriorate rapidly again soon. The Russian Federation warns that it will not extend the agreements on the release of grain exports through the Black Sea. He has new demands.
Blocking the Black Sea crossing
Russian Ambassador to the UN Gennady Gatilov delivered a letter to the organisation in which Moscow made demands that it be willing to extend the treaty on the non-blocking of sea routes through the Black Sea so that supplies of grain and fertiliser to the world market could continue. The existing contract is due to expire next month and the signing of a new one is under threat, Reuters reported.
Gatilov just told Reuters that Russia has addressed its complaints to the UN about compliance with the existing agreement. “If we don’t see from our perspective that something is happening in that direction, then sorry, but we’re going to have to rethink all of this,” he said. According to him, it is not impossible that a new contract will not be signed. “There is that possibility,” he said.
Key pathways for the round market
The trade routes through the Black Sea are important for the world grain market. Their blockage after the invasion of Ukraine by Russian troops led to an increase in the price of cereals as a basic raw material for the production of baked goods. If the road is blocked again, grain is likely to become more expensive again.
