Putin Just Announced “Russia Has Had Enough!“ | This Changes Everything
Putin Just Announced “Russia Has Had Enough!“ | This Changes Everything
#economy #market #crisis
The Black Sea Grain Deal, an intricate textile woven from the threads of Russia and the West, aimed to ensure stability in the global grain market. An agreement that sought to bridge gaps, foster prosperity, and forge a common understanding. Until, unexpectedly, it came undone.
As whispers of its withdrawal spread through the corridors of power, questions emerged. Why did Russia, a key player, decide to withdraw from a deal that held so much potential? As the deal about grain from the Black Sea reaches its halfway point, it shows how countries are connected and how agreements they make can easily be broken.
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Thanks For Watching Our Video; Putin Just Announced “Russia Has Had Enough!“ | This Changes Everything
The Black Sea grain deal. It’s like a puzzle with Turkey, the UN, and Russia all coming together in July 2022. This deal was all about making sure Ukraine, which is a big source of grain, could ship out its grain through the Bosphorus Strait. It turns out, the usual routes like roads, rails, or even canals just couldn’t handle the quantity of grain Ukraine wanted to export.
Turkey got involved because their president, Recep Tayyip Erdoğan, is tight with Vladimir Putin. Plus, they’ve got this old Montreux convention from way back in 1936 that lets them regulate the traffic through the Bosphorus and Dardanelles straits.
So, what did this deal promise? Well, this deal was a big deal! It let Ukraine export food and fertilizer from three major ports on the Black Sea, Odesa, Chornomorsk, and Pivdennyi. Ukrainian ships guided cargo vessels through safe paths in the Black Sea, avoiding any dangerous areas.
They’d then sail towards Istanbul in a special humanitarian lane. Inspectors from Russia, Turkey, Ukraine, and the UN would give these ships the once-over, making sure everything was on the up and up.
Oh, and there was another side deal too. Which tried to keep the effects of sanctions on Russian food and fertilizer exports to a minimum. Both these deals were checked every four and then two months.
Despite some serious trust issues, Ukraine managed to ship out around 33 million tonnes of grain in a year. The UK says about 61% of that ended up in low- and middle-income countries. And 65% of those were wheat.
The World Food Programme even bought about 750,000 tonnes of Ukrainian grain to help out places like Afghanistan, Ethiopia, Somalia, and Sudan. This steady flow of grain helped keep the price stable at around $800 per tonne, a good drop from the high of $1,360.
But Russia thinks that only less than 4% of this grain went to the poorest countries. They say that even if richer countries were buying the wheat, the extra supply was still bringing down the price for everyone. But it still beats the agenda.
Now, Russia started to put the brakes on those inspections, you know, the ones making sure everything was shipshape. Back in October 2022, they were doing about 10 inspections a day, which meant around 4.2 million metric tonnes were sailing out that month.
November saw just seven inspections a day, and by May, there were only two inspections, resulting in only 1.3 million metric tonnes leaving. The UN, on the other hand, could have gone through up to 40 ships daily.
When you ask why it hit a rough patch, it’s like this. Russia wasn’t feeling the love for the second part of the deal that would’ve boosted their agricultural exports. The UK says they’re shipping out more Russian food than before, and even grain and fertilizer from Novorossiysk.
But Moscow has a different take, they say that the sanctions on Russian goods weren’t clear enough for insurance companies to feel comfortable insuring Russian ships loaded with food.
Plus, they wanted the sanctions lifted from their main agriculture bank. They had a whole list of demands, from getting agricultural machinery and parts flowing again, to restarting the Togliatti-Odesa ammonia pipeline, and also getting those assets and accounts of Russian companies back on track.
Now, when it comes to pointing fingers, it’s a bit of a blame game. The West thinks Putin gave the cold shoulder to the deal since Ukraine was getting richer. But hey, the UN’s secretary general, António Guterres, was putting in some real elbow grease to meet Putin’s requests.
Russia also said that any ship leaving a Ukrainian port could be a military target. Turkey, part of NATO, might be gearing up for a showdown by helping those grain exports leave the ports without Russia’s nod.
But, you know, that’s like walking on thin ice. Putin’s been dropping hints that he’s open to hopping back into the deal if his demands are met.
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