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Russia’s war against Ukraine threatens to destroy the economies of many developing countries, which are now facing even higher food and energy costs and increasingly difficult financial conditions, a United Nations working group has warned.
UN Secretary-General Antonio Guterres released the report on April 13, saying the war is exacerbating a crisis in food, energy and finance in the poorest countries already struggling to deal with the COVID-19 pandemic. , climate change and lack of access to adequate funding for economic recovery.
“We are now facing a perfect storm that threatens to destroy the economies of many developing countries,” Guterres told reporters.
“Approximately 1.7 billion people – a third of whom already live in poverty – are now highly exposed to disruptions in food, energy and financial systems that are causing growing poverty and hunger,” he said.
Guterres also mentioned the fact that 36 countries import more than half of their wheat from Russia and Ukraine.
Rising food and energy prices, coming at the top of the overwhelming debts of many poor countries, could lead to social and political instability, Guterres said.
He called for an immediate end to the war in Ukraine, the lifting of export restrictions, investment in renewable energy and financial support for developing countries.
Russia is the world’s leading exporter of natural gas and the second largest exporter of oil while neighboring Russia and Belarus export about 20 percent of the world’s fertilizer fertilizers.
Guterres said oil prices have risen more than 60 percent over the past year, natural gas prices have risen by 50 percent in recent months and fertilizer prices have doubled.
The task force calls on countries to ensure a steady flow of food and fertilizers through open markets, lift export restrictions and direct surpluses and reserves to those in need. Guterres said this would help maintain food prices and alleviate volatility in food markets.
In terms of energy, the working group urges governments to refrain from aggregation, to immediately release strategic oil reserves and additional reserves, and to reduce the use of wheat for biofuels.
Guterres urged countries to use the crisis as an opportunity to accelerate the transition to renewable energy.
In terms of finance, the working group issued “an urgent call for swift and swift action by the international community” to help developing countries avoid another decade of lost economic development, “a generalized debt crisis and social instability”. and political ”.
The war in Ukraine began with an attack by Russia on February 24th. After this attack, Russia faced harsh sanctions from the West.
The war in Ukraine has produced thousands of dead and millions of refugees. The impact on the economy since the start of the war in Ukraine, has been observed in Kosovo./REL
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