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What are the Market Implications of the Ukrainian Grain Export Deal?

The Ukrainian Grain Export Deal

A grain export deal was finally signed by Ukraine, Turkey, Russia, and the United Nations (UN) on July 22 (USDA, Foreign Agricultural Service, Grain: World Markets and Trade, August 2022).  With much media fanfare, the first shipment of Ukrainian corn left the Bosphorus strait and headed for Lebanon on August 3 (Financial Times, August 3, 2022).  The agreement, set to last for 120 days with potential for renewal, provides for the safe passage and inspection of grains from three Ukrainian ports on the Black Sea – Odesa, Chornomorsk, and Pyvdenny – shipments following a route to Turkish ports approved by the Russian navy, with an agreed 10 nautical mile buffer zone (Reuters, August 8, 2022).  The movement of grain will be monitored from a center in Istanbul, and before their return to Ukraine, vessels will be jointly inspected by teams from Russia, Ukraine, Turkey, and the UN to ensure they carry no weapons (New York Times, August 1, 2022).

Source : osu.edu

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