Russia's objection to extend grain deal pushes wheat prices up

Moscow expressed its objections to the extension of the grain deal in connection with the recent attack on the Crimea Bridge. Putin said in July that Russia's requirements of the agreement had never been met.

Russia informed Turkey, the UN and Ukraine of its objection to the extension of the grain deal, Russian Foreign Ministry spokeswoman Maria Zakharova told TASS on July 17. The Foreign Ministry will soon publish a statement clarifying its position, she added. 

The grain export agreement was concluded on July 22, 2022 in Istanbul. It was concluded for 120 days, and then extended three times.

The first part of the agreements concerned the export of Ukrainian agricultural products from the ports of Odessa, Chernomorsk and Yuzhny; the second involves lifting restrictions on the export of Russian agricultural products and fertilisers. The UN noted that during the year, not a single ship with Russian fertilisers was sent as part of the Black Sea initiative.

The grain deal expires on July 17, 2023.

Wheat futures for September delivery increased by 4.24 percent to $6.89 a bushel, according to the Chicago Mercantile Exchange on Monday afternoon, July 17. 

Erdogan: Grain deal example of successful diplomacy

Interestingly, Turkish President Recep Tayyip Erdogan said that the grain deal left its mark in history as an example of successful diplomacy, TASS reports.

According to Erdogan, Ankara made every effort to rescue the Black Sea agreements. The Turkish president did not rule out a possible resumption of the deal until August, after negotiations with Russian President Vladimir Putin.