Ukraine-Russia war: Nigeria and others could face disruptions in commodity supplies, IMF says

The International Monetary Fund says countries that have very close economic ties with Ukraine and Russia are particularly at risk of supply shortages and disruptions.

He added that poor households around the world would suffer from rising food and fuel prices as the war between Ukraine and Russia drags on.

The Washington-based Fund said so on Saturday in a press release titled “IMF Staff Statement on the Economic Impact of the War in Ukraine.”

The statement said, among other things: “Countries that maintain very close economic ties with Ukraine and Russia are particularly at risk of shortages and supply disruptions and are most affected by the growing influx of refugees.

the punch had reported that Russia was among Nigeria’s top 10 import trading partners between the third quarter of 2020 and the corresponding period in 2021, with a total import trade value of N993.38 billion.

The IMF Executive Board further deplored the tragic loss of life, human suffering and ongoing massive damage to Ukraine’s physical infrastructure, adding that more than one million refugees were in the neighboring countries.

According to the statement, the economic consequences are dire for the world, as there is a spike in energy and commodity prices.

“While the situation remains very fluid and the outlook is subject to extraordinary uncertainty, the economic consequences are already very serious. Prices for energy and raw materials, including wheat and other grains, have surged , adding to inflationary pressures stemming from supply chain disruptions and the rebound from the Covid-19 pandemic.

“Price shocks will have an impact around the world, especially on poor households for whom food and fuel represent a higher proportion of expenditure. Should the conflict escalate, the economic damage would be all the more devastating,” the statement said.

The Fund also said sanctions against Russia would have a substantial impact on the global economy and financial markets, with significant spillovers to other countries.

He further underlined the need for fiscal policy to support the most vulnerable households, to help offset the rising cost of living.

He added that Ukraine had requested $1.4 billion in emergency financing under the IMF’s Rapid Financing Instrument to help cushion the economic effects of the war.

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