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Russia Says It Will Rejoin Ukraine Grain-Export Deal

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ISTANBUL—Russia said it would resume participation in a deal to allow Ukrainian grain exports, ending a dayslong standoff that threatened the steady flow of such shipments to world markets.

Grain markets fell after Russia’s move. Wheat was down more than 5% early Wednesday, while corn prices lost more than 1%.

Over the weekend, Russia suspended its involvement in a deal with the United Nations and Turkey struck in July that allowed for the safe passage of grain exports from war-torn Ukrainian ports through the Black Sea to world markets. Moscow had said a maritime corridor used to facilitate the grain shipments had been used in an attack on Russia-occupied Crimea. Moscow threatened to board ships that left without permission.

But Russia’s Defense Ministry said early Wednesday it had received written guarantees from Kyiv that Ukraine wouldn’t use the corridor to attack Russian forces. 

Turkish President

Recep Tayyip Erdogan,

who helped broker the agreement, separately said Russia had rejoined the deal, which for months had allowed for the safe transport of Ukrainian grain. He said in a speech to lawmakers in Ankara that Russian President

Vladimir Putin

had agreed to rejoin the deal and as of Wednesday “grain shipments [will] continue as previously planned.”

No ships were scheduled to leave port on Wednesday, in what U.N. officials described as an operational pause ahead of plans for eight ships to leave on Thursday. It couldn’t be determined whether Russia’s agreement to rejoin the deal would change that schedule.

Russia’s decision to pull out of the deal had triggered a surge in the global price of wheat and days of diplomacy aimed at trying to convince Russia to rejoin. Meanwhile, U.N., Turkish and Ukrainian officials arranged for vessels to continue sailing through the Black Sea corridor anyway, defying Russia’s threats.

An oil refinery in Sicily, owned by Russia’s second largest oil and gas giant Lukoil, acts as a pass-through for Russian crude, which ultimately makes its way to the U.S. as gasoline and other refined oil products. Photo Illustration: Laura Kammermann

Russia’s suspension threatened to increase economic pressure on Ukraine, which relied on agriculture for about 10% of its gross domestic product before the war, Western and Ukrainian officials said. The Russian shutdown also imperiled food supplies for millions of people in poorer countries that import Ukrainian wheat.

Russia’s invasion of Ukraine had bottled up those grain exports, sending global prices soaring. The U.N.-brokered deal moderated those prices, but also appeared to give Moscow outsize leverage on markets. As Mr. Putin threatened in recent weeks to leave the deal, Western officials accused him of using food as a weapon. The willingness of ships to continue their voyages despite Russia’s threats in recent days raised questions about Moscow’s ability to stem the flow. 

A key consideration for shipowners: insurance. Underwriters have insured voyages taken under the auspices of the deal. Without Russia’s participation and amid Moscow’s threats, at least one big insurer stopped writing new policies while talks with Russia continued.  

Ismini Palla, a spokeswoman for the U.N. at a coordination center in Istanbul that is charged with overseeing the deal, said Wednesday’s pause in shipping, which was planned before Russia’s decision to rejoin the deal, was intended “to provide time for planning and discussions for the next movement of vessels.”

Ukraine shipped nearly 10 million tons of corn, wheat, sunflower oil and other products through the deal’s maritime corridor between August and October, helping to return the country’s exports to prewar levels.

Russia stopped cooperating with the agreement after it accused Ukraine of using the corridor to attack Russian forces over the weekend. The U.N. said no military vessels are allowed to approach the corridor, which is closely monitored using satellite data.

In threatening to abandon the deal in recent months, Russia had complained that not enough of Ukraine’s grain was going to poor countries and said Western sanctions had slowed Russian food and fertilizer exports. U.S. and European Union officials say the sanctions don’t apply to food products. The U.N. said the measures have created obstacles to financing, insuring, shipping and paying for Russian products.

Russia’s Defense Ministry said Wednesday that thanks to the U.N. and Turkey, “it was possible to obtain the necessary written guarantees from Ukraine” that it wouldn’t use the maritime corridor and Ukrainian ports for combat operations against Russia. Russia “considers that the guarantees received at the moment appear to be sufficient and resumes the implementation of the agreement,” it said in a statement.

—Ann M. Simmons in Moscow contributed to this article.

Write to Jared Malsin at [email protected]

Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8



ISTANBUL—Russia said it would resume participation in a deal to allow Ukrainian grain exports, ending a dayslong standoff that threatened the steady flow of such shipments to world markets.

Grain markets fell after Russia’s move. Wheat was down more than 5% early Wednesday, while corn prices lost more than 1%.

Over the weekend, Russia suspended its involvement in a deal with the United Nations and Turkey struck in July that allowed for the safe passage of grain exports from war-torn Ukrainian ports through the Black Sea to world markets. Moscow had said a maritime corridor used to facilitate the grain shipments had been used in an attack on Russia-occupied Crimea. Moscow threatened to board ships that left without permission.

But Russia’s Defense Ministry said early Wednesday it had received written guarantees from Kyiv that Ukraine wouldn’t use the corridor to attack Russian forces. 

Turkish President

Recep Tayyip Erdogan,

who helped broker the agreement, separately said Russia had rejoined the deal, which for months had allowed for the safe transport of Ukrainian grain. He said in a speech to lawmakers in Ankara that Russian President

Vladimir Putin

had agreed to rejoin the deal and as of Wednesday “grain shipments [will] continue as previously planned.”

No ships were scheduled to leave port on Wednesday, in what U.N. officials described as an operational pause ahead of plans for eight ships to leave on Thursday. It couldn’t be determined whether Russia’s agreement to rejoin the deal would change that schedule.

Russia’s decision to pull out of the deal had triggered a surge in the global price of wheat and days of diplomacy aimed at trying to convince Russia to rejoin. Meanwhile, U.N., Turkish and Ukrainian officials arranged for vessels to continue sailing through the Black Sea corridor anyway, defying Russia’s threats.

An oil refinery in Sicily, owned by Russia’s second largest oil and gas giant Lukoil, acts as a pass-through for Russian crude, which ultimately makes its way to the U.S. as gasoline and other refined oil products. Photo Illustration: Laura Kammermann

Russia’s suspension threatened to increase economic pressure on Ukraine, which relied on agriculture for about 10% of its gross domestic product before the war, Western and Ukrainian officials said. The Russian shutdown also imperiled food supplies for millions of people in poorer countries that import Ukrainian wheat.

Russia’s invasion of Ukraine had bottled up those grain exports, sending global prices soaring. The U.N.-brokered deal moderated those prices, but also appeared to give Moscow outsize leverage on markets. As Mr. Putin threatened in recent weeks to leave the deal, Western officials accused him of using food as a weapon. The willingness of ships to continue their voyages despite Russia’s threats in recent days raised questions about Moscow’s ability to stem the flow. 

A key consideration for shipowners: insurance. Underwriters have insured voyages taken under the auspices of the deal. Without Russia’s participation and amid Moscow’s threats, at least one big insurer stopped writing new policies while talks with Russia continued.  

Ismini Palla, a spokeswoman for the U.N. at a coordination center in Istanbul that is charged with overseeing the deal, said Wednesday’s pause in shipping, which was planned before Russia’s decision to rejoin the deal, was intended “to provide time for planning and discussions for the next movement of vessels.”

Ukraine shipped nearly 10 million tons of corn, wheat, sunflower oil and other products through the deal’s maritime corridor between August and October, helping to return the country’s exports to prewar levels.

Russia stopped cooperating with the agreement after it accused Ukraine of using the corridor to attack Russian forces over the weekend. The U.N. said no military vessels are allowed to approach the corridor, which is closely monitored using satellite data.

In threatening to abandon the deal in recent months, Russia had complained that not enough of Ukraine’s grain was going to poor countries and said Western sanctions had slowed Russian food and fertilizer exports. U.S. and European Union officials say the sanctions don’t apply to food products. The U.N. said the measures have created obstacles to financing, insuring, shipping and paying for Russian products.

Russia’s Defense Ministry said Wednesday that thanks to the U.N. and Turkey, “it was possible to obtain the necessary written guarantees from Ukraine” that it wouldn’t use the maritime corridor and Ukrainian ports for combat operations against Russia. Russia “considers that the guarantees received at the moment appear to be sufficient and resumes the implementation of the agreement,” it said in a statement.

—Ann M. Simmons in Moscow contributed to this article.

Write to Jared Malsin at [email protected]

Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

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