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 Faculty of Economics, Administrative and Social Sciences - iisbf@gelisim.edu.tr

International Trade And Business








 GRAIN CORRIDOR DISPUTE


The war that started between Russia and Ukraine in 2022 has affected the whole world and still continues to show its effect.


Russia and Ukraine are the two most important countries in the world in world grain exports. In fact, according to the data of the World Food Program, Ukrainian grain is the main food source for approximately 400 million people around the world. However, Ukraine could not export grain due to many reasons such as the seizure of the ports by Russia during the war. Russia, on the other hand, slowed down its grain exports as a reaction to Europe.
 
The fact that grain exports are not made by Russia and Ukraine for various reasons has left the world countries to worry about experiencing serious problems. For this reason, Türkiye and UN member states stepped in; the Grain Corridor Agreement with Russia-Ukraine was signed. Thanks to the agreement, grain prices decreased for a while. However, Russia withdrew from the Grain Corridor Agreement by stating that the promises given to it when signing the Grain Corridor Agreement were not kept, Ukraine had an advantageous position, and the sanctions imposed on its food products
were still not lifted. This withdrawal created an atmosphere of panic all over the world. Although Türkiye and the UN have tried to persuade Russia, it is seen that no progress has been made yet.

What if Russia does not want the Grain Corridor Agreement to be extended? According to Independent writer Erdem, Türkiye is the world's largest flour exporter. To be able to export this, it needs to produce wheat. Wheat production in the domestic market is not at a level to meet the flour export. Therefore, Türkiye** needs to import wheat. However, in cases where the war continues and the Grain Corridor Agreement is not extended, there will inevitably be increases in global food prices, as in the first periods of the war. The increase in food prices will directly affect the domestic market prices of Türkiye and thus the consumer. It has been stated that if there is no change in the current situation, millions of people will face the danger of starvation, especially in African and Middle Eastern countries.