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world news Diahuebs 10 Maart 2022

Ukraine bans exports of wheat, oats and other food staples

(AP) — Ukraine’s gov- rely on the farmlands of the
ernment has banned the The export ban is needed to Black Sea region — known
export of wheat, oats and prevent a “humanitarian cri- as the “breadbasket of the
other staples that are cru- sis in Ukraine,” stabilize the world.”
cial for global food sup- market and “meet the needs
plies as authorities try to of the population in criti- Russia and Ukraine together
ensure they can feed peo- cal food products,” Roman supply nearly a third of the
ple during Russia’s inten- Leshchenko, Ukraine’s min- world’s wheat and barley ex-
sifying war. ister of agrarian and food pol- ports, which have soared in
icy, said in a statement posted price since the invasion.
New rules on agricultural on the government website
exports introduced this week and his Facebook page. The products they send are
also prohibit the export of made into bread, noodles
millet, buckwheat, sugar, live It’s the latest sign that the and animal feed around the
cattle, and meat and other Russia’s invasion of Ukraine world, and any shortages
“byproducts” from cattle, ac- threatens the food supply could create food insecurity
cording to a government an- and livelihoods of people in in places like Egypt and Leba- The export ban will likely re- when prices are at their high-
nouncement. Europe, Africa and Asia who non. duce global food supplies just est level since 2011.

Europe faces pressure to join US, British ban on Russian oil

(AP) — Europe faces a tough electricity are already painfully high from Russia, while Ireland gets only would be easier to replace with oth-
choice: Is it worth a recession partly because of skyrocketing natural 5%. er suppliers than natural gas, which
to choke off oil and gas money gas prices in Europe. Governments mostly comes by fixed pipeline from
to Russia while it fights a war in have rolled out subsidies to compen- The European Commission, the Russia.
Ukraine? sate people for high utility bills, while EU’s executive arm, announced a
gasoline has risen above 2.01 euros plan Tuesday to wean the bloc off European refineries that turn crude
While U.S. and British bans on Rus- per liter — the equivalent of $8.33 two-thirds of Russian natural gas by into gasoline are set up for denser
sian oil increase the pressure on Eu- per gallon, meaning filling up a com- the end of the year, including by pur- Russian oil and would face challenges
rope to follow suit, the continent’s pact car could cost 90 euros ($98). chasing more liquefied natural gas switching to other kinds of oil. Rus-
dependence on Russia for energy brought by ship and building up re- sia supplies 14% of Europe’s diesel
makes an immediate embargo much Those costs already are cutting into newables more quickly. fuel used for trucks and many cars,
more difficult. Still, some officials consumer spending, with inflation at according to analysts at S&P Global
say it is the only way to stop pouring all-time high of 5.8%. The question That already will be a massive chal- Platts, meaning disruption would
billions in oil and gas revenue into is: How much more pain can Euro- lenge to accomplish, Netherlands “significantly tighten the market.”
President Vladimir Putin’s coffers, peans take to try to stop Putin’s attack Prime Minister Mark Rutte said, be-
despite the near certainty of record on Ukraine? cause “we are very much dependent, Europe has made it through most of
inflation worsening. that’s the sad reality.” the heating season, but would face a
U.S. President Joe Biden acknowl- severe challenge in refilling its natural
Europe gets around 40% of its natu- edged as much when he announced The EU goal “is a huge task to get gas reserves in time for next winter.
ral gas and 25% of its oil from Rus- the U.S. ban on Russian oil imports, there. I’m not sure we can get that,
sia, whereas the U.S. gets meager saying “many of our European allies but we have to do everything in our The continent could replace all but
amounts of oil and no natural gas. and partners will not be able to join power to make that happen,” he said 10% to 15% of Russian gas, requir-
An EU boycott would mean higher us.” Wednesday. ing forced rationing that would hit
prices at the pump and on utility industrial users first, energy analysts
bills, and ultimately the threat of an Efforts to agree on a boycott could be With the world already facing an en- at Bruegel say.
energy crisis and recession while the complicated because some EU mem- ergy crunch and oil prices soaring to
economy is still recovering from the ber countries are much more depen- $120 per barrel — compared with $76 Despite the potential fallout, de-
coronavirus pandemic. dent than others on Russia. Germa- at the end of last year — a European bate on a ban is ongoing. Germany’s
ny and Italy rely heavily on Russian boycott would send prices and infla- economy minister, Robert Habeck,
Prices for everything from food to natural gas. Poland gets 67% of its oil tion “to the moon,” said Tagliapietra defended on Tuesday the decision to
from the Bruegel think tank. And not exempt Russian energy from sanc-
just for Europe, but energy-consum- tions and noted that U.S. officials
ing countries around the world. said they would “neither demand nor
ask” Europe’s largest economy to join
Yet the intensification of the conflict, an oil embargo.
the stream of refugees and the heart-
rending images of suffering are keep- But some German lawmakers sup-
ing the issue very much on the table. port it.

There is “considerable pressure both Boycotting Russian energy would be
from allies as well as domestically — “a hard decision, but a possible and
the public would probably back this therefore necessary one” that would
sort of a move as long as it didn’t “hit the decisive lifeline of the Putin
meant too high prices,” Caroline regime,” said Norbert Roettgen, a
Bain, chief commodities economist member of the German parliament’s
at Capital Economics said in an on- foreign relations committee for the
line briefing Tuesday. opposition Christian Democrat con-
servatives.
Bain expected European countries
to take a “more measured approach” Dominik Tarczynski, a member of
rather than a complete ban on Rus- the European parliament for the pop-
sian energy and “look at ways in ulist Law and Justice Party of Poland,
which they can reduce considerably put it this way: “The ban on Netflix
their reliance on Russian energy.” is a joke, because people are dying, so
we need a ban on Russian oil and gas
Oil, which mostly comes by tanker, now.”