The extension of the grain deal has had a restraining effect on the prices of agricultural products in the world, and in the short term it would help normalize food inflation, the research and forecasting department of the Bank of Russia said on Tuesday
MOSCOW (Pakistan Point News / Sputnik - 30th May, 2023) The extension of the grain deal has had a restraining effect on the prices of agricultural products in the world, and in the short term it would help normalize food inflation, the research and forecasting department of the Bank of Russia said on Tuesday.
The department's opinion may not coincide with the official position of the Bank of Russia.
"The extension of the grain deal until mid-July has had a restraining effect on world prices for agricultural products. In the short term, this will help normalize food inflation in the world," the department said.
The grain deal was brokered by the United Nations and Turkey in July 2022 to facilitate the export of Ukrainian agricultural products from Black Sea ports during the hostilities, which began in February that year. The package agreement also includes a memorandum of understanding between Russia and the UN to unblock Russian grain and fertilizer exports via the Black Sea, which, according to Moscow, has not been implemented due to Western sanctions.
In mid-May, the Russian Foreign Ministry said that the grain deal had been extended unchanged until July 17, but that if all the problematic issues of the initiative were not resolved within two months, it would be terminated after July 17.
