(Lapresse – Imagoeconomica)
Putin, the blackmail on the non-renewal of the wheat agreement is a big bluff. Here because
Vladimir Putin’s decision by do not renew the grain covenanteffectively blocks the routes of ships carrying grain from Ukraine to the rest of the world. The news has unleashed the most apocalyptic predictions, such as “the specter of hunger threatens the world”. THE professionals of the sector, the traders who manage the purchases of cereals on world markets, on the other hand, they weren’t very impressed. Global wholesale prices had a small and short rise, then even dropped slightly in yesterday’s session. Why do markets believe Putin’s announcement is a bluff?
READ ALSO: Russia suspends the agreement on wheat: the specter of global hunger returns
Federico Rampini writes on Corriere della Sera: the main explanations are of three types. I’ll start with the victims of this maneuver. It has always been said that if Ukraine fails to sell its grain the damage is enormous for many poor countries, especially in Africa. It is true that several African nations are among the grain importers, both Ukrainian and Russian. But they are not the biggest buyers. Surprise (for us mere mortals, not for industry experts) the main beneficiary of the grain deal that allowed Kiev to resume its exports is by far China … Consequently it will be Beijing, even before the poor nations in Africa or elsewhere, who will be affected by the blockade imposed by Putin. It is no coincidence that when the announcement of the end of the agreement arrived from Moscow, the government of Xi Jinping reacted immediately by asking for an extension of the Black Sea Initiative.
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