Rob Vos, the Director of the Markets, Trade, and Institutions Division at IFPRI, believes that separate export agreements signed in Istanbul will help reduce food prices in the global market.
Russia and Ukraine signed separate agreements with Turkey and the United Nations clearing the way for the export of millions of tons of Ukrainian grain as well as some Russian grain and fertilizer across the Black Sea. This deal is expected to end a wartime standoff that has threatened food security worldwide.
As a reminder, on July 22, documents on lifting restrictions on Russian exports were signed in Istanbul. Russia pledged to provide assistance in the export of Ukrainian grain. The deal was concluded between Russia, Turkey, Ukraine, and the UN.
UN Secretary-General Antonio Guterres called it "a beacon of hope" for millions of people who are suffering from soaring food prices. "Today, there is a beacon on the Black Sea. A beacon of hope, a beacon of possibility, a beacon of relief in a world that needs it more than ever," Guterres said.
Currently, wheat and corn prices in global markets are gradually decreasing. Rob Vos reckons that a long-awaited drop in prices also occurred amid expectations of a good harvest in the US and Australia in 2022.
According to Vos, the deal was concluded in time to avoid a severe crisis. In the second half of the year, Kyiv is projected to export a great bulk of the products the global market desperately needs. He also stressed that this deal was of utmost importance because of the high volatility in wheat prices.
