Russia-Ukraine war impacts global trade: BPS

Trading

The war between Russia and Ukraine had an impact on global trade, given the strategic role played by both nations, Head of the Central Statistics Agency (BPS) Margo Yuwono stated.

“The role of Russia and Ukraine in the global market is quite strategic. Russia is the second-largest exporter of crude oil. They are also the world’s third-largest coal exporter, as well as the world’s largest wheat exporter,” Yuwono noted during a press conference here on Monday.

Moreover, Russia is the seventh-largest exporter of liquefied natural gas (LNG) in the world, he remarked.

This fact proves that in the global order, Russia has a significant influence on other countries.

Meanwhile, Ukraine is also the world’s largest exporter of vegetable oil, the world’s fourth-largest exporter of corn, and the world’s fifth-largest exporter of wheat.

According to Yuwono, the war between Russia and Ukraine will affect the supply chains of several commodities by the two countries.

“Given the strategic roles of the two countries, I quote the IMF that the war between Russia and Ukraine has led to an increase in commodity prices in several countries in the western hemisphere. This will affect inflation,” he stated.

Moreover, the war will affect the situation in Sub-Saharan Africa, as 80 percent of their grain supply comes from the two warring countries.

The war between Russia and Ukraine will also cause an increase in commodity prices and affect the tourism sector in Middle Eastern and African countries, where both regions are tourist destinations for Russians and Ukrainians.

“Hence, the war will, of course, affect revenues in the Middle East and North Africa,” Yuwono noted.

In the meantime, the impact of war on countries in Europe will tend to disrupt the supply of natural gas and cause fiscal pressure in these countries.

Meanwhile, the impact of the war between Russia and Ukraine on Indonesia will lead to an increase in the price of non-oil and gas commodities, especially coal and CPO, which will further affect Indonesia’s exports.

“The increase in oil and gas prices will also affect our oil and gas imports in March 2022. In future, the impact of the war on price hikes on a global scale will depend on how long the war will last,” Yuwono stated.

Source: Antara News