What is the Black Sea Grain Deal?

What’s in today’s article?

• Why in news?
• Geographical location of Black Sea
• What is Black Sea grain deal?
• Why has Russia not agreed to renew it?
• How are Russia, Ukraine grain exports faring amid the war?

 

Why in news?

• The last ship carrying grain from Ukraine, under a UN-brokered deal that guarantees its safe passage, left the port of Odesa.
• This deal is set to expire on July 17, and Russia has still not agreed to extend it.

 

Geographical location of Black Sea

• The Black Sea lies between the continents of Asia and Europe. 
• It is bound to the west by the Balkan Peninsula in South-eastern Europe, to the east by the Caucasus, north by East European Plains, and south by Anatolia of Western Asia.
• It is bordered by Ukraine to the north, Russia to the northeast, Georgia to the east, Turkey to the south, and Bulgaria and Romania to the west.
• The black Sea drainage basin drains several countries, including the six countries that share its coast.

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Image Caption: Black Sea

 

What is Black Sea Grain Deal?

• Background
  • Ukraine is among the world’s biggest exporter of foodgrains, such as wheat and corn, and a major contributor to the UN’s food aid programmes. 
  • When Russia invaded the country and blockaded its ports, it sent food prices soaring and raised fears of food security in the poorer nations of the world. 
    • Pakistan, for instance, saw wheat prices skyrocket to crisis levels.
  • Against this backdrop, the UN and Turkey got Russia to agree to the Black Sea Grain Initiative.
• About
  • In July 2022, Russia and Ukraine signed a deal to reopen grains exports from Ukrainian Black Sea ports. 
    • The agreement is also known as the Black Sea Initiative.
  • Under the initiative, cargo ships would be allowed to travel from and to three Ukrainian ports of Odesa, Chornomorsk and Pivdennyi (Yuzhny), after inspection that they weren’t carrying arms. 
    • The safe passage in the Black Sea was 310 nautical miles long and three nautical miles wide.
  • A control centre was established in Istanbul, staffed by U.N., Turkish, Russian and Ukrainian officials, to run and coordinate the process.
  • The deal has been extended twice, and is due to expire on July 17.

 

Why has Russia not agreed to renew it?

• Russia claims that the promises made to it under the deal have not been met, and it is still facing trouble exporting its own agricultural products and fertilisers.
• While there is no direct restriction on Russia’s agricultural products, barriers on payment platforms, insurance, shipping and other logistics are hampering its exports.
• Russia has also said that it had agreed to the grain deal in order to help ensure global food security, but Ukraine has since exported mainly to high-and middle-income countries. 
• The UN says while this is true, poorer countries have been helped by food prices cooling down.

 

How are Russia, Ukraine grain exports faring amid the war?

• Russia is consolidating its position as the world’s top wheat exporter.
• However, Ukraine’s shipments are projected to more than halve from their peak and production plunge to a 11-year-low.
• The primary destinations for Russian wheat are the Middle East, North Africa and Central Asia, led by Egypt, Iran and Algeria.
• Ukraine’s markets have shifted dramatically from Asia and North Africa before the war to mainly Europe, mostly due to ease of shipment.

 

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Q1) What is Balkan Peninsula?

The Balkan Peninsula, often referred to as the Balkans, is a geographical and historical region in Southeastern Europe. It is located in the eastern part of the European continent and is bordered by the Adriatic Sea to the west, the Mediterranean Sea to the south, the Aegean Sea to the southeast, and various countries to the north and east. The Balkan Peninsula is home to several countries, including Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Greece, Kosovo, Montenegro, North Macedonia, Romania, Serbia, and Slovenia. Some definitions of the Balkans also include parts of other neighboring countries such as Turkey and Moldova.

 

Q2) What is Caucasus region?

The Caucasus region is a mountainous area located at the intersection of Eastern Europe and Western Asia, between the Black Sea and the Caspian Sea. It is named after the Caucasus Mountains, which span the region and form a natural border between Europe and Asia. The Caucasus region is culturally, ethnically, and geographically diverse, with a rich history and complex geopolitical dynamics.

 

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Source: What is the Black Sea grain deal, set to expire Monday unless Russia extends it | The Hindu