IMF Warns of Escalating Global Food Inflation as Russia Withdraws from Ukraine Grain Agreement

Shafaq News/ The International Monetary Fund (IMF) on Wednesday said Russia's withdrawal from an agreement allowing Ukrainian grain exports via the Black Sea may exacerbate global food insecurity and propel food prices upward, particularly impacting low-income countries.

An IMF spokesperson said the global lender is keeping a careful eye on unfolding developments in the region and assessing their potential impact on global food security.

"The discontinuation of the initiative impacts the food supply to countries that rely heavily on shipments from Ukraine, in particular in North Africa, the Middle East, and South Asia," the fund said. "It worsens the food security outlook and risks adding to global food inflation, especially for low-income countries."

Earlier this week, several members of the Group of 20 decried Russia's decision to renounce the United Nations-mediated Black Sea grain agreement. This decision was allegedly precipitated by the failure to meet Russia's demands to enforce a concurrent arrangement relaxing regulations for its own food and fertilizer exports.

The IMF underscored that the Black Sea agreement had been pivotal in promoting food, grain, and fertilizer exports from Ukraine to the rest of the globe. Coupled with the revocation of export prohibitions and surging food production in key exporting nations, the agreement had been instrumental in mitigating pressure on international food prices, the spokesperson highlighted.