This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at https://www.bbc.co.uk/news/world-61759692

The article has changed 25 times. There is an RSS feed of changes available.

Version 12 Version 13
Ukraine grain deal: why is Russia pulling out? Ukraine grain deal: why is Russia pulling out?
(about 2 hours later)
A grain ship in the port of Chornomorsk on Ukraine's Black Sea coastA grain ship in the port of Chornomorsk on Ukraine's Black Sea coast
Russia has refused to renew a deal with Ukraine which allowed it to export grain through the Black Sea.Russia has refused to renew a deal with Ukraine which allowed it to export grain through the Black Sea.
The deal enabled Ukraine to supply world markets with over 32 million tonnes of food products. It will now need to find alternative routes for its exports.The deal enabled Ukraine to supply world markets with over 32 million tonnes of food products. It will now need to find alternative routes for its exports.
What was the grain deal?What was the grain deal?
When Russia invaded Ukraine in February 2022, its navy blockaded the country's Black Sea ports.When Russia invaded Ukraine in February 2022, its navy blockaded the country's Black Sea ports.
The Ukraine grain deal let cargo ships pass safely along a corridor in the Black Sea 310 nautical miles long and three nautical miles wide, to and from the Ukrainian ports of Odesa, Chornomorsk and Yuzhny/Pivdennyi.The Ukraine grain deal let cargo ships pass safely along a corridor in the Black Sea 310 nautical miles long and three nautical miles wide, to and from the Ukrainian ports of Odesa, Chornomorsk and Yuzhny/Pivdennyi.
The deal was brokered in July 2022 by Turkey and the UN.The deal was brokered in July 2022 by Turkey and the UN.
It also allowed the Russian navy to check ships for weapons at the Bosphorus Strait, at the entrance to the Black Sea.It also allowed the Russian navy to check ships for weapons at the Bosphorus Strait, at the entrance to the Black Sea.
Why is the grain deal important?Why is the grain deal important?
Ukraine is one of the world's largest exporters of sunflower, maize, wheat and barley.Ukraine is one of the world's largest exporters of sunflower, maize, wheat and barley.
Russia's blockade meant some 20 million tonnes of grain became trapped in its Black Sea ports. This caused world food prices to soar.Russia's blockade meant some 20 million tonnes of grain became trapped in its Black Sea ports. This caused world food prices to soar.
It also threatened to cause food shortages in several African and Middle Eastern countries which relied on imports of Ukrainian grain. It also threatened to cause food shortages in several African and Middle Eastern countries which relied heavily on imports of Ukrainian grain.
When the deal was signed and grain shipments restarted, world food prices declined by roughly 20%, according to the UN's Food and Agriculture Organization.When the deal was signed and grain shipments restarted, world food prices declined by roughly 20%, according to the UN's Food and Agriculture Organization.
Why has Russia refused to renew the grain deal?Why has Russia refused to renew the grain deal?
When the UN brokered the deal, it told Russia it would help it increase its exports of grain and fertilisers.When the UN brokered the deal, it told Russia it would help it increase its exports of grain and fertilisers.
Although Western countries have imposed no sanctions on Russia's agricultural products, Russia says the sanctions it did impose have deterred shipping firms, international banks and insurers from dealing with its producers. Although Western countries have imposed no sanctions on Russia's agricultural products, Russia says the sanctions they did impose have deterred shipping firms, international banks and insurers from dealing with its producers.
What sanctions are being imposed on Russia?What sanctions are being imposed on Russia?
Russia asked for its state-owned agricultural bank, Rosselkhozbank, to be reconnected to the Swift fast payment system (from which all Russian banks were barred in June 2022). Russia asked for its state-owned agricultural bank, Rosselkhozbank, to be reconnected to the Swift fast payment system (from which all Russian banks were barred in June 2022).
The UN suggested that Russia set up a subsidiary of the bank, which would be allowed to use Swift - but Russia refused that option, saying it would take too long.The UN suggested that Russia set up a subsidiary of the bank, which would be allowed to use Swift - but Russia refused that option, saying it would take too long.
Other suggested schemes, such as processing payments for food and fertiliser through the US bank JPMorgan Chase, or through the African Export-Import Bank, also fell through.Other suggested schemes, such as processing payments for food and fertiliser through the US bank JPMorgan Chase, or through the African Export-Import Bank, also fell through.
Russia says it will rejoin the deal if its conditions are met.
Turkey's President Recep Tayyip Erdogan says he will try to persuade Russia's President Vladimir Putin to rejoin it when they meet in early August.
What other export routes are there for Ukrainian grain?What other export routes are there for Ukrainian grain?
The EU has a plan for distributing Ukrainian grain which cannot be shipped through the Black Sea. The EU has an existing plan for distributing Ukrainian grain which cannot be shipped through the Black Sea.
It says it can be transported across Ukraine's border with Poland and taken to ports on the Baltic Sea, or by rail and barge to the Romanian port of Constanta.It says it can be transported across Ukraine's border with Poland and taken to ports on the Baltic Sea, or by rail and barge to the Romanian port of Constanta.
Since the start of the war, Ukraine has been sending about 10% of its grain exports across its land border with Poland. However, there are likely to be logjams if it exports more grain via this route.Since the start of the war, Ukraine has been sending about 10% of its grain exports across its land border with Poland. However, there are likely to be logjams if it exports more grain via this route.
Ukraine's railways have a different gauge to those in the rest of Europe, which means that every trainload of grain has to be transferred from one set of wagons to another at the border.Ukraine's railways have a different gauge to those in the rest of Europe, which means that every trainload of grain has to be transferred from one set of wagons to another at the border.
Also, the rail network in Eastern Europe does not have the capacity to transport to the Baltic ports and Constanta even the relatively low volumes of grain that Ukraine has been exporting by land up until now.Also, the rail network in Eastern Europe does not have the capacity to transport to the Baltic ports and Constanta even the relatively low volumes of grain that Ukraine has been exporting by land up until now.
Most of this grain has stayed in east European countries such as Poland, Hungary, Romania, Bulgaria and Slovakia rather than being transported any further. It has glutted their markets and caused local food prices to crash. A lot of grain has stayed in countries such as Poland, Hungary, Romania, Bulgaria and Slovakia rather than being transported any further. It has glutted their markets and caused local food prices to crash.
To protect farmers' incomes in these countries, the EU has agreed to restrict Ukraine's food exports there until 15 September.To protect farmers' incomes in these countries, the EU has agreed to restrict Ukraine's food exports there until 15 September.
Where have Ukraine's food exports gone?Where have Ukraine's food exports gone?
The UN says that of all the food products Ukraine has exported under the grain deal over the past year:The UN says that of all the food products Ukraine has exported under the grain deal over the past year:
47% have gone to "high-income countries" including Spain, Italy and the Netherlands47% have gone to "high-income countries" including Spain, Italy and the Netherlands
26% have gone to "upper-middle income countries" such as Turkey and China26% have gone to "upper-middle income countries" such as Turkey and China
27% have gone to "low and lower-middle income countries" such as Egypt, Kenya and Sudan27% have gone to "low and lower-middle income countries" such as Egypt, Kenya and Sudan
The UN says that under the grain deal, Ukraine has shipped 625,000 tonnes of food as humanitarian aid to Afghanistan, Ethiopia, Kenya, Somalia, Sudan and Yemen. Russia says that Ukraine's failure to export more grain to poorer countries is one of the reasons it pulled out of the deal.
However, the UN says that under the grain deal, Ukraine has shipped 625,000 tonnes of food as humanitarian aid to Afghanistan, Ethiopia, Kenya, Somalia, Sudan and Yemen.
In 2022, more than half of the grain bought by the UN's World Food Programme came from Ukraine.In 2022, more than half of the grain bought by the UN's World Food Programme came from Ukraine.
Pictures provide evidence of Russian grain theftPictures provide evidence of Russian grain theft
Related TopicsRelated Topics
Russia-Ukraine warRussia-Ukraine war
TurkeyTurkey
FoodFood