The Ukraine-Russian war will cause more problems for global economy. The President of the World Bank David Malpass has recently said that Russian-Ukraine war is “a catastrophe” for the global economy. The catastrophe will cut the global economic growth, says the President of the World Bank. “The war in Ukraine comes a bad time for the world because inflation was already rising”, David Malpass.
First and foremost the war would bring food crisis. Both Russia and Ukraine are big food producers. The two countries are major source of grains such as corn and barley. Both the country together provide 30% of global supply of Barley and Ukraine provides about 15% of the global supply of Corn. Ukraine provides 10% of Wheat supply, together they contribute 28.9% Wheat production.
Another important product is Sunflower oil which is one of the vegetable oil used to cook. Ukraine is the world’s biggest producer of sunflower oil. Both Russia and Ukraine together provide 80% of world supply. War in Ukraine has stopped exports.
Russian supplies of these commodities are being restricted because of the widespread sanctions which make it hard for the rest of the world to buy its products. And Ukrainian supplies have been stopped because the war has closed the country’s port.
On the other hand, Russia is the biggest source of oil and gas. the Russian Energy supplies is damaging for Western Europe . about 39% of the EU’s electricity comes from power stations that burn fossil fuels. AS the EU looks to accelerate in transition to other energy source after the war, Vladimir Government “may permanently lose some of their markets”, added Malpass. So the fall in the value of the rouble might come.
However war means “A catastrophic impact for our economy, for our economy, for our region overall,” said Alexander Rodnyansky, the economic adviser to the President of Ukraine. “We have seen massive destructions of roads and bridges and infrastructure. So that is something that will have to be rebuilt over the years, when the war is over”, Rodnyansky said. Mr Rodnyansky added that the production is just collapsing. There are disruptions to “vital food” and “energy supplies”.
