Thursday, July 20, 2023

Wheat Prices Jump Higher As Ukraine Threatens Retaliation Against Ships Going To Russian Ports

Wheat Prices Jump Higher As Ukraine Threatens Retaliation Against Ships Going To Russian Ports
TYLER DURDEN



With as of Monday the Black Sea Initiative grain deal effectively having collapsed, Russia has been warning that ships traveling to Ukraine's Black Sea ports will be seen as potential military targets.  The dire warning came after Ukraine's government said it would persist in its grain and food exports via a temporary shipping route. A Wednesday statement from the Russian defense ministry (MoD) had announced "the flag countries of such ships will be considered parties to the Ukrainian conflict."

Ukraine on Thursday issued its own 'retaliatory' message, warning in turn that ships and food tankers going to Russian ports could come under threat. US intelligence is also now alleging that Russia has begun laying mines once again in order to block Ukrainian ports.


So both countries have now declared the southeastern and northwestern parts of the Black Sea's international waters as 'unsafe' for navigation - but without specifying exact routes or locations which could be subject of intervention.

Kiev meanwhile says it is seeking ways around this, with Romania's help, as Al Jazeerareports:

Ukraine said on Wednesday it was establishing a temporary shipping route via Romania, one of the neighboring Black Sea countries.

"Its goal is to facilitate the unblocking of international shipping in the northwestern part of the Black Sea," Vasyl Shkurakov, Ukraine’s acting minister for communities, territories and infrastructure development, said in a letter to the United Nations shipping agency, the International Maritime Organization.

Turkey's TRT outlet has since confirmed that Russian members have left the Joint Coordination Center in Istanbul as a result from Moscow's letting the grain deal termination date expire (Monday).

Wheat prices continue their steady rise since Monday, and spiked Thursday on news of Ukraine's retaliatory warning...



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