Russia-Ukraine Grain Deal Canceled
I think it’s fair to say that the number one cause of inflation in the world is Russia. Russia and its former Soviet republics are vital to the global economy, explaining why it’s one of the superpowers of the world. Leaving Russia stranded while punishing them through sanctions is justified, but it’s leaving scars on economies. Russia is fighting back with their own economic decisions, and that’s another weight being placed on the back of consumers now.
A drone attack that damaged Moscow equipment in the Black Sea seems to be the last straw for Russia, as they now announced they would suspend participation in the agreement with Ukraine to ship grain out of the Black Sea. Russia accused Britain of being a co-conspirator in the attack along with Ukraine, a claim the Ministry of Defense has vehemently denied. Western countries have accused Russia of shifting the focus to this instead of their aggression in the war, but the effects will play out, nonetheless. The UN, Turkey, Russia, and Ukraine came to an agreement to get the millions of tons of grain in Ukraine shipped to the rest of the world to get food prices to calm down. Ukraine provides 10 percent of the grain in the world and developing countries in Africa and Asia rely on these resources. With this move, it is likely we’ll see another sharp rise in food prices across the world along with commodity prices for items like corn. It’s estimated that 10 million people could be pushed into starvation as a result, worsening the hunger crisis that is plaguing the globe now.
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I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.
