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| Economy |
| Ukraine-Russia war: Collateral Damage Around the World |
| 2022-02-25 |
| Russia's invasion of Ukraine prompts Syria to cut spending [AlAhram] The government of economically-battered Syria decided Thursday to cut spending in an effort to reduce the impact of Russia's invasion of Ukraine, concerned that oil and wheat prices could sharply increase, the state-owned news agency said. Russia-Ukraine crisis: Collateral damage on wheat [AlAhram] As tensions continue to rise between Russia and Ukraine, observers are anticipating the economic fallout from a possible war in the region since Russia, Ukraine, and Romania combined produce one third of the world’s wheat. This is particularly important for Egypt, the world’s largest wheat importer. The expected economic fallout from the tensions in Ukraine will likely lead to an increase in the price of wheat around the world, said Nader Noureddin, a professor of water and land resources in Cairo. Noureddin said that Egypt imports 90 per cent of its wheat from Russia and Ukraine. In 2021, it imported ten million tons from the two countries out of the 13 million tons of wheat it imported that year. While there are alternative sources such as France, Australia, the US, Canada and Argentina, the cost of wheat from them is much higher. Egypt’s reliance on Russian and Ukrainian wheat is due to two main factors, according to Noureddin. First, wheat from the two countries costs ten per cent less than global prices, and second, they are closer to Egypt with shipments taking only ten days to reach Egyptian shores. In comparison, shipments coming from the US take 24 days, and they take 28 days from Argentina. So, here is the list of items which will get costlier in India in the wake of the Russia-Ukraine war: FUEL PRICES: The first and biggest casualty is fuel prices. Being the third-largest consumer of crude oil in the world, petroleum products are likely to get expensive as crude oil prices near $104 per barrel after Russian forces attacked Ukraine. The government, which brought down the prices during Diwali last year, is likely to hike the fuel prices after the completion of assembly elections. EDIBLE OIL: Ukraine is the biggest producer of sunflower oil and it accounts for almost 80% of India's sunflower oil imports. The impact on its supply will automatically increase the price of the edible oil. WHEAT: More than a quarter of the world's wheat exports come from Russia and Ukraine. In the wake of the war, the flow of wheat and grain could be disrupted. Ukraine and Russia account for almost 70% of the world's sunflower oil shipments. METAL PRICE: Russia is the world's top producer of Palladium and the world's second-largest producer of Platinum. It is used in a critical component in catalytic converters - a part of a car's exhaust system that controls emissions. Palladium is also used in electronics, dentistry, medicine, hydrogen purification, chemical applications, groundwater treatment, and jewellery. Palladium is a key component of fuel cells, which react hydrogen with oxygen to produce electricity, heat, and water. |
| Posted by:trailing wife |