According to Andrei Melnichenko, the conflict caused a further deterioration of supply chains, already affected by the pandemic, and a drastic rise in the price of fertilizers.
EU-Sanctioned Russian Billionaire Warns Ukraine Crisis Could Lead to Further Global ‘Food Inflation’
The world could plunge into a food crisis if the situation in Ukraine does not stabilize, Andrei Melnichenko, founder of Russian fertilizer producer EuroChem and Siberian coal energy company SUEK, told Reuters.
“The events in Ukraine are truly tragic. We urgently need peace,” the businessman said in a statement, stressing that “one of the victims of the crisis will be agriculture and food.”
According to Melnichenko, the conflict between Russia and Ukraine caused a further deterioration of supply chains, already affected by the coronavirus pandemic, and resulted in a drastic rise in fertilizer prices. This rise, in turn, makes fertilizers no longer affordable for farmers, the Russian billionaire explained.
“Now [la crisis] will lead to even higher food inflation and likely food shortages in the world’s poorest countries,” Melnichenko predicted.
As stated on March 11, the director general of the Food and Agriculture Organization of the United Nations (FAO), Qu Dongyu, “many countries in Europe and Central Asia depend on Russia for more 50% of your fertilizer supply. In this context, the head of the institution warned that restrictions on Russian exports and logistical disruptions will also affect food prices, a fact that could “seriously increase food insecurity worldwide.”
Sanctions against Russian businessmen
On March 9, Andrei Melnichenko and 13 other Russian businessmen were blacklisted by the European Union. The sanctions imposed provide for the prohibition of entry to the countries of the community bloc and the freezing of their assets in the EU. According to Brussels, these people support the Russian authorities, benefit from them or guarantee them a source of income.
Within the framework of the imposed sanctions, the Italian Police seized last Friday a billionaire’s yacht docked in the port of Trieste and valued at 530 million euros (578 million dollars). According to the statement sent to Reuters, on March 9 Melnichenko resigned as a member of the board of directors and non-executive director of EuroChem and SUEK.
