By WASHINGTON — The United States and its Western allies are looking to China to help resolve the calamitous domino effect of Russia’s exit from a crucial U.N.-backed agriculture deal.
China, one of Moscow’s most strategic allies and the world’s second-largest economy, was the indisputable top recipient of Ukrainian agricultural products under the landmark agreement known as the Black Sea Grain Initiative. After nearly a year in place, Russia ditched the pact last month, citing frustrations that the deal only benefited Ukraine.
The agreement eased Russia’s naval blockade in the Black Sea and established a maritime humanitarian corridor which saw the passage of more than 1,000 ships carrying nearly 33 million metric tons of Ukrainian wheat, barley, corn and sunflower meal.
Since the inception of the July 2022 deal, which was brokered nearly six months into Russia’s full-scale war, Chinese ports had welcomed 8 million metric tons of Ukrainian agricultural products, the lion’s share according to data provided by the United Nations.
“China is the biggest buyer of Ukrainian grain and so with the breakdown of the Black Sea Grain Initiative, the pressures on Beijing are going to be extreme in terms of food price inflation,” David Riedel, founder of Riedel Research Group, said in an interview with CNBC.
“They may have been stockpiling a little bit ahead of the breakdown in that agreement but that’s a stockpile of weeks not months,” he said. “I would be very concerned about food price inflation in China,” Riedel added.
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Zhang Jun, China’s permanent representative to the United Nations, said the Black Sea grain deal had a “positive impact on maintaining global food security” and called for the immediate resumption of Ukrainian agriculture exports as well as Russian fertilizer products.
“China hopes that all relevant parties will intensify dialogue and consultation and meet each other halfway,” Zhang said during a U.N. Security Council meeting chaired by U.S. Secretary of State Antony Blinken.
Blinken slammed Russia’s retreat from the deal and vowed to work with allies on ways to mitigate the mounting food crisis triggered in part, by the collapse of the Black Sea Grain Initiative.
“Since Russia pulled out of the arrangement on July 17, ignoring the world’s appeals, grain prices have risen by more than 8% around the world,” Blinken said before the international body.
“And what has Russia’s response been to the world’s distress and outrage? Bombing Ukrainian granaries, mining port entrances, threatening to attack any vessel in the Black Sea – no matter its flag, no matter its cargo,” Bidens’ top diplomat added.
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