Grain Prices Soar as Russia-Ukraine Conflict Disrupts Black Sea Trade
Global grain prices are soaring as Russia and Ukraine intensify their attacks on each other's main export infrastructure in the Black Sea, disrupting trade and leaving both countries struggling to find alternative outlets.
The conflict has caused a 'huge issue' for the world, according to Masha Belikova of Fastmarkets Agricensus. Russia is the largest exporter of wheat, accounting for around a third of global supply, while Ukraine is one of the world's largest producers and exporters of agricultural products, including corn, wheat, barley, and sunflower oil.
Ukraine relies heavily on its grain exports for foreign currency earnings, with its 2022 exports totaling $10 billion. The EU has accused Russia of 'weaponizing hunger' against millions in Africa, Asia, and the Middle East by blocking Ukraine's agricultural exports.