Ukrainian Prime Minister Serhiy Koretsky states that Russian terror in the Black Sea basin could trigger a global food crisis and inflation.
"We have two tactical challenges among our strategic priorities. The first is winter; the second is the agricultural corridor. Russian terror is escalating significantly; ships carrying grain are being attacked in the Black Sea basin. To put this in perspective, the entire Black Sea basin – and I emphasize this again – the entire Black Sea basin accounts for up to 30% of global wheat exports. The Black Sea is currently a high-risk zone. And if this affects grain exports – which account for up to 30% – to any significant extent, it will, first and foremost, trigger a food crisis and threaten food security; second, it will certainly lead to inflation and rising prices. And prices will rise not only for export – or, more precisely, for imported goods in those countries – but also in the domestic market. "We estimate this to be approximately $65 billion in annual inflationary pressure globally," Koretsky said at a meeting with ambassadors in Kyiv on Monday.
He added that if all agricultural crops "follow the trend set by wheat," then 2.5 billion metric tonnes of agricultural output would contribute about $150 billion in global inflation on an annualized basis.
"This is a huge issue. Unfortunately, we cannot reach everyone at once right now – this, by the way, is an appeal to diplomats… We will prepare a two-page document from the government. One will outline the general framework covering all issues, and the other will detail the specific, practical tasks, questions, and requests that each minister, who will speak and report to you in the future, will present to every ambassador in every country," the prime minister said.
"Regarding the "grain corridor" and the "solidarity routes," we are certainly counting on our military – much depends on them – but we are seeking alternative, diversified channels, and our neighboring countries, in particular, play the most important role in this. I am confident that the Russians will try to harm us through their propaganda or some kind of controversial actions. "We must stay one step ahead," he said.
