World News: Grain Deal may be renewed

Author
Joanna Sikorska
11.09.2023
4 min reading
World News: Grain Deal may be renewed
Summary
Table of contents
  • The G20 meeting in New Delhi discussed the reintroduction of the Grain Deal.
  • Russia declared its willingness to rejoin the agreement, but on one condition.
  • Talks on the reintroduction of the Grain Deal are still ongoing.

Reviving of the Grain Deal

The G20 meeting in New Delhi on Sept. 9-10, 2023, discussed the reintroduction of the Grain Deal. The group of countries called for “full, timely, and effective implementation to ensure the immediate and unimpeded deliveries of grain, foodstuffs, and fertilizers/inputs” from both Russia and Ukraine to meet the needs of countries in the Global South.

What are Russia’s conditions?

In response to the G20 call, Russian Foreign Minister Sergei Lavrov announced that Russia is ready to rejoin the Grain Deal. There is one condition: Russia will not rejoin the agreement until all necessary steps have been taken to remove barriers to Russian grain and fertilizer exports. Although Ukraine opposes the lifting of sanctions against Russia, Russia, Ukraine and Turkey intend to continue talks on the Grain Deal. According to the Turkish president, revival of the agreement is not impossible.

Effects of the Grain Deal on the World

The Grain Deal had a major impact on the trade market – Ukraine is one of the world’s largest grain suppliers, and after Russia’s invasion, Ukraine’s access to Black Sea ports was blocked. The Grain Deal regulated Ukrainian grain exports from Black Sea ports, and the suspension of the agreement led to an increase in grain and oilseed prices, which in turn led to higher product prices.

 

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