By Alexander Miller, consultant in emerging markets – Eurasia Business News, July 14, 2022

Representatives of Russia and Ukraine made substantive progress in their negotiations over wheat grain exports. They would be ready to sign next week an agreement that will unblock the sea transportation of Ukrainian grain towards the West. Hope for this was expressed in the Ministry of Defense of Turkey, summing up the results of the negotiations held on Wednesday in Istanbul on the “grain issue“.

The solution of the problem is beneficial to both sides of the conflict: Ukraine will be able to get at least $ 5 billion from the sale of grain and the Russian Federation will again demonstrate its importance in the international arena.

Read also : Wheat Prices Soar at $396 per ton

The Istanbul meeting was held “positively and constructively“: the parties expressed their readiness to solve the problem with the impossibility of exporting grain from the Black Sea ports of Ukraine. This was stated on Wednesday evening in the Ministry of Defense of Turkey. They said that representatives of the Russian Federation and Ukraine discussed all the details regarding the safe passage of grain-laden ships through the Black Sea, agreed to create a specialized coordination center in Istanbul and decided to meet again next week. At that meeting, as expected, an agreement will be signed, which will slightly reduce the severity of the current global food crisis.

Read also : Wheat Prices Rise Again, Amid War in Eastern Europe

Optimism was also imbued with the statement of the UN Secretary General António Guterres (the world organization is the fourth, along with the Russian Federation, Ukraine and Turkey, participant in the negotiations). He said that a serious step was taken in Istanbul on the way to the export of grain from Ukraine. Mr. Guterres thanked Moscow and Kiev for their work, noting that the Istanbul meeting proved that representatives of the two countries can talk productively with each other.

Blockade of Russian and Ukrainian exports because of the war explain with the climate change the soaring wheat prices in the world.

Movements in grain futures markets have been dramatic. Wheat for delivery in September 2022 closed at $7.84 per bushel on Feb. 16, a week before the start of the Russian military operation. By May 17, that same contract was trading at $12.79 per bushel.

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