3 days ago 5

Why the New Grain Deal Matters to the US

During the 12-hour talks in Saudi Arabia, Moscow and Washington discussed steps to ensure safe navigation in the Black Sea, including a pledge to avoid the use of force and prevent commercial vessels from being used for military purposes.

Russia and the US have agreed to advance the Black Sea Initiative – why could the US be interested in the new deal?

Diplomatic strategy: Acting as a broker, America may have a vested interest in taking part in negotiating an agreement that could improve its relations with Russia following key phone talks between Presidents Vladimir Putin and Donald Trump.

Economic considerations: The US remains a major player in global agricultural trade, and potential disruptions to the grain market could affect global commodity prices and ride roughshod over US exporters.

Energy security: The US understands that grain trade is intertwined with broader supply chains, including energy. America also understands that a stable Black Sea corridor means more predictable energy and commodity flows, which benefits energy markets that the US takes part in.

Personal implications: The White House is highly interested in ensuring the implementation of the US-initiated deal, which becomes a question of profit and prestige for America.