UN's Guterres-Still Working To Revive Black Sea Grain Deal

UN Secretary General Antonio Guterres states that the UN is still working to re-establish the Black Sea Grain Initiative, which was cancelled earlier in July by Russia. Guterres states that a "handful of donations to some countries" won't correct the "dramatic impact" of the end of the deal, referring to Russian President Vladimir Putin's pledge to several African nationsearlier todaythat Moscow would provide them with free grain.

Despite Guterres' statement the resumption of the deal any time soon seems unlikely. Any upcoming meeting between Putin and Turkish President Recep Tayyip Erdogan could prove important in deciding whether the deal can be revived.

• Russia refused to renew the deal on 17 July. Since then, Russia has launched missile strikes on key grain export facilities and ports in Odessa, Chornomorsk, and Reni, the latter very close to the border of NATO member Romania.
• The end to the grain deal has raised concerns about food shortages emerging later in the year around the world if the sizeable Ukrainian harvest, due to be reaped in the autumn, is unable to be exported.
• A major reduction in Ukrainian grain supplies risks food shortages in markets heavily reliant on supply (mainly in MENA and Africa), which in turn could spark political unrest. It could also sustain high food price inflation in Europe as a result of the same amount of demand chasing lower quantities of global supply with grain stocks stuck in Ukrainian silos.