Written by – Elijah J. Magnier:
Russia halted its gas supplies to Finland following its refusal to pay in Roubles, contrary to more than half of the 54 countries that switched to paying their gas supply with the Russian currencies, most of them on the European continent, plus Japan, all US allies. This would raise energy and food prices over the whole continent, which began to affect countries worldwide due to the Western sanctions imposed on Moscow, which generated the boomerang effect, hitting the West, especially Europe. The US claims that the rise in food and energy prices is due to the war waged by Russia against Ukraine, while the US sanctions on Russia and its means of transport and payment reception indicate the opposite.
Russia – not Ukraine – is considered the primary source of wheat globally, representing about 24 per cent of the needs and consumption of the world’s population. Canada (12.44 per cent) is ranked second, the US (12.24 per cent) is ranked third, France (10.30 per cent) is ranked fourth, and Ukraine (8.9 per cent) is ranked fifth.
The world doesn’t depend on Ukrainian wheat. The Ukrainian war added to an already existing problem where many countries will not be able to reach the food supplies, even if Ukraine regains its exports.
Ukrainian wheat production takes place throughout the entire Ukrainian territory. Although the bulk production is in the east of the country, which is exposed to a Russian military operation, the logistic supply line has suffered from transporting NATO weapons on the railroads that Russia targeted. These logistical supply routes will require rebuilding when the war stops. Ukraine is getting around the sea blockade and has agreed with Lithuania, Latvia and Poland to export its wheat and sell it at a high price due to increasing prices worldwide. Russia says that there are 75 ships owned by 17 countries anchored in the port of Odesa carrying wheat exports. However, the Ukrainian army deployed mines in the Black Sea, making navigation dangerous and impossible.
As for the most significant cause of the wheat crisis, the US announced sanctions on the Russian energy supply, raising the transport price, and penalizing seven Russian shipping companies and 69 other ships. All have been listed as prohibited property, including the state-owned “Sovcom Float”, the largest shipping company in Russia, and “United Shipbuilding”, the largest and most developed and widespread shipbuilder.
These western sanctions directly affect the pricing of 2022-2023 of all goods transported, including crops, especially since there are no indications of the possibility of lifting these sanctions on Russia even if the military operations in Ukraine ended. The supply of wheat and corn from Ukraine does not depend on the survival or end of the war. In fact, 70 per cent of the diesel fuel and fertilizers (Russia is the largest exporter of fertilizer) that farmers need come from Russia. In addition, the labour that Ukraine needs
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Proofread by: Maurice Brasher