Explained | What is the Black Sea Grain Initiative?

The deal provides for a safe humanitarian corridor for the export of Ukrainian grains through the Black Sea, to tackle rising food prices due to the geopolitical conflict grappling the ‘breadbasket’

The story so far: In a move that allayed concerns about yet another disruption to global food supply chains, Russia on Wednesday re-joined the Black Sea Grain deal. The reversal came a day after Russian President Vladimir Putin stated that Moscow would suspend, but not end, its involvement in the deal.

“The Russian Federation believes that the guarantees it has received currently appear sufficient, and resumes the implementation of the agreement,” news agency Associated Press quoted the Russian Defence Ministry as saying. It added that the mediation of the United Nations and Turkey had secured the continued cooperation.

The Black Sea Grain deal endeavours to tackle escalating food prices emanating from supply chain disruptions because of Russian actions in the world’s ‘breadbasket’. 

Moscow had earlier said that the move was in response to Ukraine’s involvement in an attack on Russian ships in the Sevastopol port in the Crimean Peninsula (annexed by Russia in 2014). Ukraine had refuted the charges. The development led to both United States and Ukraine accusing Russia of using food exports as a means to strengthen its position in the war. 

The deal, brokered by the United Nations (UN) and Turkey, was signed in Istanbul on July 27 this year. Initially stipulated for a period of 120 days, with an option to extend or terminate thereafter in November, the deal was to provide for a safe maritime humanitarian corridor for Ukrainian exports (particularly for food grains) from three of its key ports, namely, Chornomorsk, Odesa and Yuzhny/Pivdennyi. The central idea was to calm markets by ensuring an adequate supply of grains, thereby limiting food price inflation.

Ukraine is among the largest exporters of wheat, maize, rapeseed, sunflower seeds and sunflower oil, globally. Its access to the deep-sea ports in the Black Sea enables it to directly approach Russia and Europe along with grain importers from the Middle East and North Africa. Russia’s action in the East European country has now disturbed this route, earlier used to ship 75% of its agricultural exports – precisely what the initiative sought to address.

The deal put in place a Joint Coordination Centre (JCC), comprising senior representatives from Russia, Turkey, Ukraine and the UN for oversight and coordination.