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Significance

Support for Ukraine among its closest neighbours has been strained by the diversion of Ukrainian grain to local markets, depressing prices for domestic producers. This has been compounded by Russia's decision to pull out of the deal allowing for the export of Ukrainian grain via the Black Sea. Poland, Slovakia and Hungary have broken with EU policy on grain exports.

Impacts

Ukrainian attacks on Russian naval assets, to increase the scope for grain exports, are likely to rise.

The United States pledged financial assistance to open alternative routes for Ukrainian grain.

Unless Ukraine can restore ties with its eastern EU partners, grain prices will face upward pressure.

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