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Significance

Ukraine had been a significant grain exporter, much of it to poor countries, accounting for about 10% of world trade. The invasion stopped that. In July 2022, Turkey and the UN brokered the Black Sea Grain Initiative allowing grain ships safe passage to Turkey. On 17 July, Russia terminated the arrangement.

Impacts

Food inflation may accelerate; Russian grain futures prices jumped immediately after termination of the grain deal was announced.

Due to the Ukraine war, the number of acutely food-insecure people rose to an all-time high of 345 million in 82 countries.

A grain shortage would hit the WFP, which last year suspended grain deliveries to 1.7 million people in famine-struck South Sudan.

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