As we reported earlier, Kremlin press secretary Dmitry Peskov stated that the "Grain Agreement" has been suspended. Once the part of the agreement related to Russia is implemented, Moscow will immediately return to the "Wheat Agreement."
How will the suspension of the "Wheat Agreement" impact the global economy?
Economist-expert Eldaniz Emirov stated in his statement to Ednews that the non-renewal of the duration of the "Grain Agreement" can create a short-term turbulence:
"In general, there is a high possibility of extending the duration of the 'Grain Agreement.' Currently, Russia wants to achieve certain concessions regarding the imposed sanctions by exerting maximum influence. Russia has no way out other than extending the duration of the agreement because, without extending the 'Grain Agreement,' it may face the opposition of countries that are not officially against Moscow. One such country is Turkey.
The expert stated that the suspension of the "Grain Agreement" can have a delayed impact on Azerbaijan's grain and flour prices.
"According to observations, the price of wheat in the global market affects Azerbaijan's domestic market after a period of 3-4 months. This is because our country approaches food security more reliably and strategically. Azerbaijan does not face risks in terms of short-term wheat reserves. Some specific cases may apply restrictions, but there is no need for it. It is not expected that the price of wheat in the global market will reach the maximum wheat price in 2022."
Oguz, Joel Nwolisa
