A special military operation in Ukraine and anti-Russian sanctions have led to risks for the outlook for the global economy, follows from the report of the rating agency Moody’s, which is at the disposal of RBC. If Russia retaliates against Western sanctions, energy prices will rise even more, the report says.
Moody’s also points to rising prices for agricultural products. The share of Russia and Ukraine in world wheat exports is about 25%. Events in Ukraine take place in the winter, not during the harvest season, the impact on supplies was not as serious, analysts say.
Due to the rise in corn prices, animal feed prices will rise, which will eventually affect the prices of meat. There is an increase in prices for soybeans, fertilizers may rise in price, the report says.
“The resulting rise in food prices will further reduce the purchasing power of consumers. <…> Increasing food inflation, along with rising other prices, may also exacerbate social tensions in some countries,” RBC quotes Moody’s.
The shortage of metals, including aluminum, platinum, copper and palladium, will lead to higher prices in the automotive industry, according to the rating agency.
Sanctions against Russia will have a significant impact on the economy and financial markets in the world, the Executive Board of the International Monetary Fund (IMF) said in a statement.
“Although the situation is rather unstable and forecasting is extremely difficult, the economic consequences are already very serious. Energy and commodity prices, including wheat and other grains, rose, exacerbating inflationary pressures from supply chain disruptions and the recovery from the COVID-19 pandemic,” the fund said.
Experts also noted that sanctions against Russia will have a significant impact on the global economy and financial markets, many countries will face significant side effects. Price shocks will be felt around the world, especially in low-affluence households.
On February 24, Putin announced the start of a special military operation in the Donbass. He called its goal “the protection of people who have been subjected to bullying and genocide by the Kiev regime for eight years.” The President assured that Russia has no plans to occupy Ukraine, but Moscow will strive for the demilitarization and denazification of this country.