“Food prices started rising in mid-2020 and reached an all-time high in February 2022. This is a real market shock caused by high demand and rising prices on food, raw materials and transportation services, including freight, in the post-COVID recovery period.”
According to Russia, the issues in recent times, especially within the agricultural space, are associated with: “first of all, miscalculations and systematic mistakes in the macroeconomic [strategy] (including financial trade) energy (including climate) and food policies of developed countries. COVID-19 followed by the breach of supply and distribution chains as well as [a] spike in freight and insurance rates.”
Russia invaded Ukraine in February 2022 following the former Soviet Union leader’s disagreement with NATO’s eastward expansion.
Reports indicate that about 10,000 people have lost their lives following the Russia-Ukraine war.
Several sanctions have been imposed on Russia by developed countries.
Most countries, including Ghana, say the Russia-Ukraine war is directly affecting their economies and agricultural value chain.
Data shows that Russia and Ukraine together account for nearly 30 percent of the global wheat trade.
Economists had said Russia’s invasion of Ukraine could spark a global food crisis if nothing is done to reverse the current trend.
The conflict has already reduced Russian and Ukrainian exports of crucial commodities such as wheat, sunflower oil, and corn. It has also affected cost of fuel, prices of fertilizer and other key agricultural inputs.
But the Russian government is not taking responsibility for such challenges.
Read the full statement below:
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