Russia Resumes Ukraine Grain-Export Deal in Abrupt Reversal
Russia agreed to resume a deal allowing safe passage of Ukrainian crop exports, abruptly reversing course after Turkey and the United Nations pushed ahead with the shipments over Moscow’s objections. Wheat prices dropped on the news. The Kremlin’s pullout from the agreement on Saturday and Russian warnings over the safety of ships in the Black Sea corridor had sowed chaos through agricultural markets and sent prices soaring. But as the shipments continued this week - with a one-day interruption Wednesday - despite Russian warnings they could be in danger, Moscow’s leverage appeared limited. President Vladimir Putin said Russia was resuming participation in the deal because it had received “written guarantees” from Ukraine that the safe-passage corridor wouldn’t be used for military purposes. Ukraine has long said it wouldn’t use it for such operations. Chicago wheat futures were down 6.7% as of 2:10 p.m. London time, the most since March, after surging in the first two days of the week. Grain prices have been volatile over the past few months amid speculation over the fate of the deal which is set to expire Nov. 19. In televised comments, Putin warned that Russia reserved the right to pull out of the agreement again if Ukraine violates it. The Foreign Ministry said that the issue of the extension of the pact would be discussed separately and it would decide by the deadline, according to Tass. Subscribe to our YouTube channel: https://bit.ly/2TwO8Gm Subscribe to our newest channel Quicktake Explained: https://bit.ly/3iERrup Bloomberg Quicktake brings you live global news and original shows spanning business, technology, politics and culture. Make sense of the stories changing your business and your world. To watch complete coverage on Bloomberg Quicktake 24/7, visit http://www.bloomberg.com/qt/live, or watch on Apple TV, Roku, Samsung Smart TV, Fire TV and Android TV on the Bloomberg app. Have a story to tell? Fill out this survey for a chance to have it featured on Bloomberg Quicktake: https://cor.us/surveys/27AF30 Connect with us on… YouTube: / bloomberg Breaking News on YouTube: / bloombergquicktakenews Twitter: / quicktake Facebook: / quicktake Instagram: / quicktake
