Russia and the United States are holding discussions in Riyadh for a possible ceasefire in Ukraine. Aside from truce talks, both parties are set to discuss restarting a key agreement aimed at protecting merchant shipping in the Black Sea, the Kremlin announced on Monday (March 24). Moscow said that it believes important parts of the original deal were never fulfilled.

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Kremlin spokesperson Dmitry Peskov said the "Black Sea Initiative," widely known as the grain deal, was among the topics being discussed at a meeting in Saudi Arabia between Russian and American officials on Monday.

Also read: US and Russia talks on Ukraine peace deal underway in Saudi Arabia: Trump-brokered ceasefire in sight?

What was the Black Sea Grain deal?

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The Black Sea grain initiative was established in July 2022 through negotiations involving Turkey, the United Nations, and Russia. Its purpose was to ensure that Ukraine, one of the world’s largest grain producers, could continue exporting its grain from southern ports through the Bosphorus. With overland routes through Poland and waterways via Romania unable to handle the necessary volumes, the agreement became essential for the global food supply.

Also read: US-Ukraine hold talks in Riyadh as US envoy expresses optimism on ending war before Russia meeting

What did the deal include?

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The initiative, one of the few diplomatic breakthroughs since the conflict began, allowed the export of commercial food products and fertiliser, including ammonia, from three key Ukrainian ports: Odesa, Chornomorsk, and Pivdennyi (formerly Yuzhny).

Ukrainian vessels escorted cargo ships through safe corridors, avoiding mined areas, before heading towards Istanbul. There, the ships were inspected by joint teams made up of Russian, Turkish, Ukrainian, and UN officials.

A second agreement was signed alongside it, intended to ease restrictions on Russia's food and fertiliser exports. Both parts of the deal were reviewed every few months.

Also read: What is 'shuttlecock diplomacy', and why is the US using it to broker ceasefire between Russia and Ukraine?

Did the agreement work?

Despite tensions and lack of trust, around 33 million tonnes of grain were exported from Ukrainian ports. The UK reported that 61% of this went to low- and middle-income countries, with 65% of wheat exports reaching those nations. The World Food Programme alone bought around 750,000 tonnes, which were sent to countries like Somalia, Ethiopia, Sudan, and Afghanistan. Thanks to the increased supply, global grain prices dropped significantly, from a high of $1,360 per tonne to about $800.

Russia, however, claimed that less than 4% of the grain reached the poorest nations. However many experts argued that even exports to wealthier countries helped reduce prices worldwide.

Also read: ‘Preposterous’: Trump envoy Witkoff dismisses Starmer’s Ukraine plan as Zelensky urges 'new pressure' on Russia

Why did the deal break down?

Over time, Russia began slowing inspections. In October 2022, ten ship inspections were carried out each day, with 4.2 million metric tonnes exported that month. By November, it fell to seven daily, and by May, only two inspections were happening each day. That month, just 1.3 million metric tonnes left Ukraine. Compared to March 2023, April saw a 29% drop in food exports under the initiative, with a further 66% drop in May. Russia eventually pulled out of the deal.

The main reason behind this, according to Moscow, was that the second part of the deal, aimed at easing Russian agricultural exports, was not upheld.

Russia argued that sanctions on its exports were not lifted clearly enough, making insurers unwilling to cover ships carrying Russian food. It also demanded that sanctions on its key agricultural bank be removed.

(With inputs from agencies)