Zelensky Appears To Suggest Unilateral Protection Of Black Sea Exports

Grain markets have moved on a headline suggesting that Ukrainian President Volodymyr Zelensky has instructed his military to unliterally safeguard Black Sea grain export corridors.

• According to Bloomberg, Zelensky said in a Telegram statement that he had instructed military officials to prepare “actions” that allow the grain deal to continue functioning. BBG notes that wheat dropped 2.7% on the headlines.
• Zelensky also told his Foreign Ministry to prepare “analogous diplomatic steps,” without elaborating on any specific measures.
• Kremlin Spokesperson Dmitry Peskov said this week vessels navigating the Black Sea without consent would be at risk: "We are talking about a zone that is very close to the area of armed hostilities. Certain risks emerge there without appropriate security guarantees.”
• A unliteral security guarantee from Kyiv would likely operate without the marine cargo and war facility which insured the value of cargo up to USD$50 million under the terms of the Black Sea grain deal.
• The facility's broker said this week: "It is suspended effectively due to the agreement not being extended. Without the corridor being in place, there is a greater degree of uncertainty attached to the risk."