Moscow, March 20 news. The situation in Ukraine will slow the post-pandemic weakening world economic recovery and could change that forever. The French newspaper Le Monde warned of this.
The newspaper pointed out that the Organisation for Economic Co-operation and Development (OECD) predicts that global GDP growth will fall by 1 percentage point and inflation will rise by 2.5 percentage points. Lawrence Boone, senior economist at the OECD, said in an article in Le Monde: "This crisis has come in the form of rising prices for energy, food and metals. ”。
The newspaper noted that the group predicted that the global economy would grow by 4.5 percent in 2022 last December, after deciding to cancel the next forecast released in early March due to "heightened uncertainty."
Le Monde also quoted the International Monetary Fund as arguing that Russia's special military action to demilitarize Ukraine could have long-term implications for the world economy. "In the long run, this conflict could fundamentally change the world economic and geopolitical order – if the terms of trade for energy change, supply chains will be rebuilt, payment networks will be fragmented, and countries will reconsider the composition of their gold and foreign exchange reserves," quoted in an International Monetary Fund publication.
Russia began a special military operation to demilitarize and demilitarize Ukraine on February 24. The armed forces said they were only dealing with the military infrastructure and the Ukrainian army. There were casualties on both sides.
Since then, many Western countries have announced large-scale sanctions against Russia, first of all against the banking sector and the supply of high-tech products. In addition, many brands have also announced the suspension of operations in the country.
The Kremlin calls these measures an economic war, a war that has never been fought before. At the same time, the authorities stressed that they are prepared and will continue to fulfill their social obligations. The central bank is taking steps to stabilize the foreign exchange market. As Prime Minister Mikhail Mishustin said earlier, the government has developed a counter-sanctions plan that includes some 100 initiatives. The funds are about one trillion rubles.
MOSCOW, 19 March - Prime Minister, Catherine Akopova. Some of the items on the shelves of domestic stores have become accustomed to disappearing. Even in the absence of crises and sanctions, there were interruptions in the product. In turbulent times, this happens with enviable regularities. In 2014, home appliances were lined up to buy, and residents bought buckwheat in large quantities, and in the 1990s, these were matches, salt, etc. D。 Now it's sugar's turn. The "Prime" agency asked experts what caused sugar to disappear from store shelves and when it might appear.
According to Viktor Yevtukhov, Deputy Minister of Industry and Trade, sugar production is sufficient and there is no problem. He also added that Russian producers produce enough sugar that supply is not expected to be interrupted considering the government's ban on exporting such products.
New sanctions appear every hour threatening the development of Russia's brewing industry. First, a potential ban on the supply of hops.
Some domestic equipment can already make beer, especially for small businesses. It is possible to replace imported yeast, although not all strains and blenders. Well, Russian malt is no longer unusual in large breweries and kraft paper breweries. But in the case of hops, Russia relies almost entirely on imports.
Russia and Ukraine are the world's largest traders in wheat, corn and sunflower oil, while Ukraine ranks first in Europe in terms of arable land and is known as the "granary of Europe". According to the USDA, Russia and Ukraine accounted for 28% and 50% of global exports in 2021, respectively; wheat exports accounted for 17% and 10% of global exports, respectively, and Russia and Ukraine were the world's first and fifth largest wheat exporters, respectively.
The Conflict between Russia and Ukraine has become the latest and most important factor in driving up prices after factors such as the epidemic, climate and inflation. Prices for five food commodities, including wheat, milk tea, cereals, vegetable oil and sugar, continued to climb, from 98.1 in 2020 to 140.7 in February, according to the Price Index released by the Food and Agriculture Organization of the United Nations in March.
The situation in Russia and Ukraine will also affect global climate change, and European countries have proposed replacing natural gas with coal to withstand the arrival of the next winter. Reaching the Paris Agreement could be delayed for decades, while Europe's economic crisis could continue for years.