Back in Early August Brookfield Brief reported on Ukraine’s ability to resume grain exports in an UN-backed deal known as the Black Sea Deal. This deal allowed Ukrainian ships safe passage through the Black Sea Towards Tripoli in which Russia would refrain from any harmful action. The deal was struck as food shortages began to impact the world economy as Ukraine was one of the world’s leading exporters of grain.
Since then, Russia has backed out of the Black Sea Deal, placing added strain on exports and the global food supply. Russia’s decision to back out of the deal on Saturday shook global markets, especially those of grain. Fortunately, Ukraine has not halted shipping quite yet as the country launched 12 ships carrying grain out of Black Sea ports on Monday.
As of right now, officials are uncertain how Russia will respond to the continued grain shipments and if Russia chooses to respond with force shipments across the Black Sea will become extremely dangerous.
Source: Financial Times