Russia is set to resume its participation in the Ukraine grain export deal, the country’s defence ministry has confirmed.
Moscow pulled out of the UN-brokered agreement over the weekend following what it called a “terrorist attack” on its fleet of Black Sea ships in Crimea by Ukrainian forces.
The country said it could not guarantee the safety of civilian ships crossing the popular trade route following the incident, which Ukraine has not claimed responsibility for.
Putin accused of ‘covert’ mobilisation – Ukraine war latest
However, after receiving written guarantees from Kyiv that it will not use the Black Sea grain corridor for military operations against Russia, Vladimir Putin rowed back on the decision.
“The Russian Federation considers that the guarantees received at the moment appear sufficient, and resumes the implementation of the agreement,” the defence ministry said as it announced it would restart exports.
The deal enables the shipment of millions of tonnes of Ukrainian grain through blockaded ports, and aims to help avert famine in poorer countries.
Turkey confirmed the news, saying that Russia’s Defence Minister Sergei Shoigu had told his Turkish counterpart that operations would restart as of midday on Wednesday.
“The grain transports will continue as agreed before as of 12pm today,” Turkey’s President Tayyip Erdogan said.
How did the markets react?
Wheat prices tumbled 6% when news of the Russian change of heart reached financial markets.
It erased gains seen on Monday, when participants were able to first react to Saturday’s news that the Black Sea export deal was off.
Other commodities, such as corn, also fell back in price.
The easing of costs is important as it removes some inflationary pressure that would have…
Source : skynews
