MOSCOW, RUSSIA — After receiving assurances that the “humanitarian corridor” created to ship grains from Ukraine to markets around the world would not be used for military purposes, Russia has reentered the Black Sea Grain Initiative, according to Reuters. Russia had withdrawn from the agreement on Oct. 29 following alleged attacks on its ships in the region. Russia’s withdrawal from the agreement had sent global wheat futures higher.
As of 6:30 a.m. central, the Chicago SRW Wheat futures contract had fallen 5.65% following Russia’s statement of reentry.
“With the help of an international organization and Turkey, the necessary written guarantees from Ukraine on not using the humanitarian corridor and Ukrainian ports designated for the export of agricultural products for military operations against the Russian Federation were obtained and submitted to the Joint Coordination Centre (JCC) on 1 November 2022,” according to a statement released by the Russian defense ministry and translated by Reuters. “In particular, the Ukrainian side officially pledged that ‘the maritime humanitarian corridor will be used only in accordance with the provisions of the Black Sea Initiative and the related JCC regulation.’ The Russian Federation believes that the guarantees received at the moment appear sufficient, and resumes implementation of the agreement.”
The grain export deal will expire on Nov. 19, but efforts are underway to extend the agreement.