“In peacetime, Ukraine’s food exports were enough to feed 400 million people. Its farmers supplied a tenth of the wheat and half the sunflower oil sold on world markets. Its shipments of grains and oilseeds through the Black Sea fell to zero last March, from 5.7 million metric tons in February.
For net importers the impact was immediate and direct. Egypt and Libya had imported two-thirds of their cereals from Russia and Ukraine, for instance. Other countries were hit by the fallout: Prices shot up, first in response to the invasion, and again as countries like India imposed bans on grain exports.
“One of the cruelest ways in which Putin has used the weapons of war to impose costs on people around the world is the ways in which his early blockade of Black Sea ports raised prices for hungry people in dozens of countries around the world,” Sen. Chris Coons (D-Del.), a close ally of President Joe Biden and who serves on the Foreign Relations Committee, said in an interview.
Coons noted the U.N., Turkey and Ukraine’s work to forge the Black Sea grain deal has reduced some of the overwhelming strain on global food prices, “but not enough yet.”
In Ukraine, farmers could not sell their crops after a bumper harvest before the war left grain stores brimming. The next harvest, already in the ground, had nowhere to go, said Joseph Glauber, a senior research fellow at the International Food Policy Research Institute and former chief economist at the U.S. Department of Agriculture.
The standstill to exports also endangered the home front. Before the war, almost half of the country’s budget stemmed from exports, and nearly half of those exports were agricultural, according to Dmytro Los of the Ukrainian Business and Trade Association. “So don’t forget that, during the war, we lost almost 45-50 percent of GDP,” Los said.
To stave off starvation abroad and rescue Ukrainian farmers, the EU set up overland “solidarity lanes” to help bring food exports out through Eastern Europe. And, in July, the U.N. and Turkey mediated the deal to allow safe passage for Ukrainian food shipments through the Black Sea.
Some 21.5 million tons of Ukrainian produce have been transported under the initiative, enabling the World Food Programme to deliver valuable aid to countries like Ethiopia and Afghanistan.
This has helped ease some of the pressure on global food prices — although they remain high — while ensuring Ukraine’s agriculture sector, a leading driver of its economy, doesn’t collapse.
“It’s very important for Ukraine, but it is even more important for the world,” said Oleksiy Goncharenko, a Ukrainian MP who represents Odesa — one of the few ports covered under the current agreement.
As talks resume this week, the fate of the grain deal hangs in the balance. Both sides have plenty of gripes.”
https://www.politico.com/news/2023/02/22/future-of-ukraine-grain-deal-up-in-the-air-00083636