Why Your Grocery Bill is Rising

Russia abrogated the Black Sea grain deal and reimposed its naval blockade of Ukraine after the West – shockingly and totally unexpectedly – again failed to live up to its responsibilities under the treaty.

The Russian military issued a new navigational warning for the Black Sea on Wednesday, declaring certain areas in its international waters to be “temporarily unsafe” for vessels. Apart from that, the military advised seafarers against attempting to reach Ukraine’s ports, stating that all vessels heading there will be treated as potential carriers of war goods starting from Thursday.

Therefore, the flag state of a ship attempting to reach the Ukrainian Black Sea ports will be deemed as “taking part in the Ukrainian conflict on the side of the Kiev regime,” the Russian Defense ministry said in a statement.

The military said it also declared certain areas in the international waters of the Black Sea to be “temporarily unsafe” for navigation. The areas are located in the north-west and south-east of the waterway, the military noted, adding that all the necessary navigational warnings have already been published as required under existing procedures.

“With the termination of the Black Sea Initiative and the abolition of the maritime humanitarian corridor, from 00:00 Moscow time on July 20, 2023, all ships en route to Ukrainian ports in the Black Sea will be considered potential carriers of military cargo,” the military insisted.

The new restrictions de-facto re-impose the Russian naval blockade on Ukraine, lifted under the so-called Black Sea grain deal in July 2022. The agreement, signed with mediation by the UN and Türkiye, enabled the safe shipment of Ukrainian grain through Black Sea corridors amid the conflict between Moscow and Kiev. Moscow withdrew from the deal on Monday, citing the West’s failure to keep any of the promises made to Russia under the agreement, including re-enabling exports of grain and fertilizers from the country.

The Russians followed the announcement with a series of missile strikes on Odessa and other Black Sea port facilities, as well as a warning that ships would no longer be allowed to freely transit the Black Sea.

Footage circulating online shows massive explosions in the vicinity of Odessa, including at its Black Sea ports. Ukrainian officials have claimed the strikes also inflicted damage on civilian infrastructure, with the city’s mayor, Gennadiy Trukhanov, saying the attack was the largest since the beginning of hostilities. He described last night in the city as “terrible.”

The cancellation of the grain deal is expected to contribute to rising food prices, especially in North Africa, the Middle East, and South Asia, according to the IMF, but will likely have a knock-on impact in Europe and North America as well.

As I mentioned on a recent Darkstream, we appear to be entering a new and more dangerous phase of the NATO-Russian war.

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