Russia pulls out of Black Sea grain deal with Ukraine


Tim Stickings
  • English
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Russia announced its withdrawal on Monday from the grain deal that allowed ships to sail from wartime Ukraine, sparking fears for global food security.

The Black Sea deal brokered by the UN and Turkey expired on Monday, with Moscow unwilling to renew it for another 60 days.

Wheat prices rose 3.4 per cent on a benchmark US index. Charities warned of a hunger threat in countries such as Lebanon, Tunisia and Somalia if the grain corridors from Ukraine are blocked.

The US led western condemnation of what it called an “act of cruelty”, as Ukraine said it would try to keep the sea corridor open and use alternative routes by land.

UN Secretary General Antonio Guterres said he was “deeply disappointed” by a Russian move that would “strike a blow to people in need everywhere”.

Moscow said the Black Sea was once again a danger zone for shipping as safety guarantees under the deal were withdrawn.

Kremlin spokesman Dmitry Peskov said Russia would return to the pact when its demands on exporting its own produce were met.

“The Black Sea agreements ceased to be valid today,” he said.

“Unfortunately, the part of these Black Sea agreements concerning Russia has not been implemented so far, so its effect is terminated.”

The pact had been credited with easing the global food crisis unleashed by the war between Russia and Ukraine, two of the world's top agricultural producers that produce an estimated 30 per cent of the world's wheat.

About 33 million tonnes of goods were exported under the deal, according to UN figures, including 16.9 million tonnes of corn, 8.9 million tonnes of wheat and large quantities of sunflower oil.

Russian President Vladimir Putin spurned the UN's appeals to prolong the deal. AFP
Russian President Vladimir Putin spurned the UN's appeals to prolong the deal. AFP

The deal gave safe passage to ships sailing through the Black Sea on condition that Russia and Ukraine could both inspect their cargo.

European Commission President Ursula von der Leyen condemned what she called a “cynical move” by Russia, which said it had notified the UN, Turkey and Ukraine that it would not support a renewal.

Turkish President Recep Tayyip Erdogan said he would speak to his Russian counterpart Vladimir Putin, while Germany appealed to Moscow to make an extension possible. The UK accused the Kremlin of using food as a weapon.

US ambassador to the UN Linda Thomas-Greenfield told reporters in New York: “While Russia plays political games, real people will suffer.”

The grain deal was a lifeline to millions of boys and girls facing devastating hunger
Nana Ndeda,
charity representative

Sarah Champion, the chairwoman of the UK Parliament's international development committee, told The National the deal should be “urgently reinstated”.

“Over half of the grain exported under the scheme is currently going to lower income countries,” she said.

“Any disruption to exports from Russia’s withdrawal from the deal is likely to hit the poorest people in some of the poorest countries the most, and could disrupt humanitarian operations sending Ukrainian grain to countries in crisis like Afghanistan, Ethiopia and Yemen.”

The charity Save the Children said Lebanon faced food insecurity while Tunisia faces an “increase in poverty and hunger”.

“The grain deal was a lifeline to millions of boys and girls facing devastating hunger. Not renewing this initiative will prove catastrophic for children around the world and cost thousands of lives,” said charity representative Nana Ndeda.

Germany's Foreign Minister Annalena Baerbock told reporters in New York that Mr Putin was using “hunger as a weapon against the entire world in his brutal war of aggression”.

“The fact that the Russian President has announced that he is once again interrupting the Black Sea Initiative, which brings grain from Ukraine to the entire world, makes it clear that he has no regard for the globe’s weakest.”

UK Foreign Secretary James Cleverly condemned the Russian leader’s actions, pointing to UN estimates that it could condemn millions more people to hunger.

“Putin is using food as a weapon,” he said. “The UK strongly condemns Russia’s withdrawal from the Black Sea Grain Initiative.

“This decision hurts the world’s poorest.

“The UN estimates that without the grain provided by the BSGI, the number of undernourished people worldwide could increase by millions.

“The best way for Russia to address concerns around global food security would be for it to withdraw its forces from Ukraine and end the war.”

Opening seaports such as Odesa allowed Ukraine to export a greater volume of grain than on complicated road and rail routes. Railway wagons have to change wheels at the Polish border because of different track gauges.

Dmytro Senik, Ukraine’s ambassador to the UAE, said the government was looking to increase the capacity of inland waterways.

“The challenges will be there as these three ports on the Danube river are already at full capacity. But we have already started work building new terminals,” he said.

President Volodymyr Zelenskyy said Ukraine would “do everything” to keep the Black Sea lanes open.

“We are not afraid,” said Mr Zelenskyy, who added some ship owners had indicated they were willing to keep sailing in the Black Sea.

Russia says assurances by the UN that it would be able to sell its own goods have not been fulfilled. It blames sanctions that western governments maintain do not apply to food.

Mr Guterres had lobbied for the deal's renewal but Mr Putin spurned his proposal to ease restrictions on a Russian bank. The UN chief also said he was “deeply” disappointed that his new proposal to extend the deal which he sent to Russian President Putin went “unheeded”.

He said the UN will not stop its efforts to enable “unimpeded access” to global markets for food products and fertilisers from both Ukraine and the Russian Federation.

Washington’s ambassador to the UN Linda Thomas-Greenfield meanwhile called Russia’s actions “another act of cruelty” and said Moscow is “playing games” and holding “humanity hostage”.

She called on the international community to urge Russia to reverse its “decision, resume negotiations extend, expand and fully implement” the initiative.

Another Russian grievance was that some of the grain went to rich countries, although the UN says developing nations have received more than half the produce.

Ukraine is one of the world's most fertile countries and top agricultural exporters. AP
Ukraine is one of the world's most fertile countries and top agricultural exporters. AP

Ms von der Leyen said the EU would keep using land routes to bring Ukrainian products to market.

Ukrainian wheat has been delivered to countries such as Afghanistan, Sudan, Djibouti, Ethiopia, Kenya, Somalia and Yemen to fight hunger. The World Food Programme had described the deal as a lifeline that had helped food prices drop by 23 per cent from their peak in the war's early stages.

Mr Putin's mind was made up before an overnight attack on a Crimean bridge and there was no link to the grain deal decision, Mr Peskov said.

The specs
Engine: 3.0-litre 6-cyl turbo

Power: 374hp at 5,500-6,500rpm

Torque: 500Nm from 1,900-5,000rpm

Transmission: 8-speed auto

Fuel consumption: 8.5L/100km

Price: from Dh285,000

On sale: from January 2022 

COMPANY PROFILE

Name: Lamsa

Founder: Badr Ward

Launched: 2014

Employees: 60

Based: Abu Dhabi

Sector: EdTech

Funding to date: $15 million

NYBL PROFILE

Company name: Nybl 

Date started: November 2018

Founder: Noor Alnahhas, Michael LeTan, Hafsa Yazdni, Sufyaan Abdul Haseeb, Waleed Rifaat, Mohammed Shono

Based: Dubai, UAE

Sector: Software Technology / Artificial Intelligence

Initial investment: $500,000

Funding round: Series B (raising $5m)

Partners/Incubators: Dubai Future Accelerators Cohort 4, Dubai Future Accelerators Cohort 6, AI Venture Labs Cohort 1, Microsoft Scale-up 

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Who was Alfred Nobel?

The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.

  • In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
  • Nobel is best known as the inventor of dynamite, but also wrote poetry and drama and could speak Russian, French, English and German by the age of 17. The five original prize categories reflect the interests closest to his heart.
  • Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.
Schedule:

Sept 15: Bangladesh v Sri Lanka (Dubai)

Sept 16: Pakistan v Qualifier (Dubai)

Sept 17: Sri Lanka v Afghanistan (Abu Dhabi)

Sept 18: India v Qualifier (Dubai)

Sept 19: India v Pakistan (Dubai)

Sept 20: Bangladesh v Afghanistan (Abu Dhabi) Super Four

Sept 21: Group A Winner v Group B Runner-up (Dubai) 

Sept 21: Group B Winner v Group A Runner-up (Abu Dhabi)

Sept 23: Group A Winner v Group A Runner-up (Dubai)

Sept 23: Group B Winner v Group B Runner-up (Abu Dhabi)

Sept 25: Group A Winner v Group B Winner (Dubai)

Sept 26: Group A Runner-up v Group B Runner-up (Abu Dhabi)

Sept 28: Final (Dubai)

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Racecard
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Cricket World Cup League 2 Fixtures

Saturday March 5, UAE v Oman, ICC Academy (all matches start at 9.30am)

Sunday March 6, Oman v Namibia, ICC Academy

Tuesday March 8, UAE v Namibia, ICC Academy

Wednesday March 9, UAE v Oman, ICC Academy

Friday March 11, Oman v Namibia, Sharjah Cricket Stadium

Saturday March 12, UAE v Namibia, Sharjah Cricket Stadium

UAE squad

Ahmed Raza (captain), Chirag Suri, Muhammad Waseem, CP Rizwan, Vriitya Aravind, Asif Khan, Basil Hameed, Rohan Mustafa, Kashif Daud, Zahoor Khan, Junaid Siddique, Karthik Meiyappan, Akif Raja, Rahul Bhatia

Red flags
  • Promises of high, fixed or 'guaranteed' returns.
  • Unregulated structured products or complex investments often used to bypass traditional safeguards.
  • Lack of clear information, vague language, no access to audited financials.
  • Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
  • Hard-selling tactics - creating urgency, offering 'exclusive' deals.

Courtesy: Carol Glynn, founder of Conscious Finance Coaching

Timeline

2012-2015

The company offers payments/bribes to win key contracts in the Middle East

May 2017

The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts

September 2021

Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act

October 2021

Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence 

December 2024

Petrofac enters into comprehensive restructuring to strengthen the financial position of the group

May 2025

The High Court of England and Wales approves the company’s restructuring plan

July 2025

The Court of Appeal issues a judgment challenging parts of the restructuring plan

August 2025

Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision

October 2025

Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange

November 2025

180 Petrofac employees laid off in the UAE

Global state-owned investor ranking by size

1.

United States

2.

China

3.

UAE

4.

Japan

5

Norway

6.

Canada

7.

Singapore

8.

Australia

9.

Saudi Arabia

10.

South Korea

Who's who in Yemen conflict

Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government

Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council

Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south

Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory

MATCH INFO

Manchester City 3 (Sterling 46', De Bruyne 65', Gundogan 70')

Aston Villa 0

Red card: Fernandinho (Manchester City)

Man of the Match: Raheem Sterling (Manchester City)

Moon Music

Artist: Coldplay

Label: Parlophone/Atlantic

Number of tracks: 10

Rating: 3/5

BOSH!'s pantry essentials

Nutritional yeast

This is Firth's pick and an ingredient he says, "gives you an instant cheesy flavour". He advises making your own cream cheese with it or simply using it to whip up a mac and cheese or wholesome lasagne. It's available in organic and specialist grocery stores across the UAE.

Seeds

"We've got a big jar of mixed seeds in our kitchen," Theasby explains. "That's what you use to make a bolognese or pie or salad: just grab a handful of seeds and sprinkle them over the top. It's a really good way to make sure you're getting your omegas."

Umami flavours

"I could say soya sauce, but I'll say all umami-makers and have them in the same batch," says Firth. He suggests having items such as Marmite, balsamic vinegar and other general, dark, umami-tasting products in your cupboard "to make your bolognese a little bit more 'umptious'".

Onions and garlic

"If you've got them, you can cook basically anything from that base," says Theasby. "These ingredients are so prevalent in every world cuisine and if you've got them in your cupboard, then you know you've got the foundation of a really nice meal."

Your grain of choice

Whether rice, quinoa, pasta or buckwheat, Firth advises always having a stock of your favourite grains in the cupboard. "That you, you have an instant meal and all you have to do is just chuck a bit of veg in."

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Fifa%20World%20Cup%20Qatar%202022%20
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The National in Davos

We are bringing you the inside story from the World Economic Forum's Annual Meeting in Davos, a gathering of hundreds of world leaders, top executives and billionaires.

RESULTS
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When is VAR used?

Goals

Penalty decisions

Direct red-card incidents

Mistaken identity

What the law says

Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.

“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.

“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”

If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.

UAE currency: the story behind the money in your pockets

Scores in brief:

  • New Medical Centre 129-5 in 17 overs bt Zayed Cricket Academy 125-6 in 20 overs.
  • William Hare Abu Dhabi Gymkhana 188-8 in 20 overs bt One Stop Tourism 184-8 in 20 overs
  • Alubond Tigers 138-7 in 20 overs bt United Bank Limited 132-7 in 20 overs
  • Multiplex 142-6 in 17 overs bt Xconcepts Automobili 140 all out in 20 overs
Updated: July 17, 2023, 8:40 PM