Russia Returns to Black Sea Grain Export Agreement... Putin Warns "Will Withdraw if Ukraine Breaks Promise"

Ukraine Promises Humanitarian Use of Export Routes
International Grain Prices Plunge as Negotiations Resume

Vladimir Putin, President of Russia [Image source=Yonhap News]

[Asia Economy Reporter Lee Ji-eun] Russia, which had declared the suspension of the Black Sea Grain Export Agreement citing Ukraine's attack on its fleet, has returned to the agreement after four days, Tass news agency reported on the 2nd (local time). However, Russian President Vladimir Putin warned that Russia would withdraw from the agreement if Ukraine uses the Black Sea route for military purposes again.

According to Tass, President Putin stated at a Russian security meeting that "the written guarantees received from Ukraine, supported by T?rkiye (Turkey) and the United Nations (UN), are sufficient to resume grain trade," and added, "I have instructed the Ministry of Defense to resume the implementation of the agreement."

According to the Russian Ministry of Defense, Ukraine sent a written guarantee to the Joint Coordination Center (JCC), which coordinates Black Sea grain exports, expressing its intention not to use the Black Sea export route for military purposes.

President Putin warned, "Everyone knows that Ukraine used the humanitarian route to attack Russia's Black Sea fleet," and added, "If Ukraine violates this guarantee, Russia reserves the right to suspend the agreement again."

He also emphasized, "We will not block grain shipments to T?rkiye," and stressed that, regardless of this agreement, Russia will keep its promise to supply grain to the poorest countries.

T?rkiye played the role of mediator between Russia and Ukraine during this negotiation process. Tass reported that Turkish President Recep Tayyip Erdo?an expressed satisfaction with the resumption of the agreement and reiterated the importance of Russia's grain exports.

With Russia's return to the grain agreement significantly easing market concerns, major grain futures prices such as wheat and corn dropped sharply. Immediately after Russia's announcement, wheat prices on the U.S. Chicago Board of Trade (CBOT) fell 6% from the previous closing price, trading at $8.47 per bushel. Corn fell 2.3%, and soybeans dropped 1%, trading at $6.81 and $14.33 per bushel, respectively.

Major foreign media reported, "Grain prices fell with Russia's return to negotiations, offsetting the gains of the past two days," but added, "Since it is uncertain whether the agreement, which is temporarily maintained until the 19th of this month, will be extended, market stability remains uncertain."

This content was produced with the assistance of AI translation services.