After Russia’s military invasion of Ukraine, countries around the world have condemned actions of the government of Vladimir Putin. Many nations adopted a growing list of sanctions in order to push the Kremlin back to the negotiating table.
Given this situation, in Latin America and the Caribbean the question arises about the possible implications that the conflict would have on the region’s economy. Farmers in several countries are already concerned about skyrocketing fertilizer priceswhose cost grew 180% globally.
As can be seen in this graph produced by Statista with data from the Observatory of Economic Complexity (OEC for its acronym in English), fertilizers are the main product imported from Russia in Latin America. Together, nitrogenous, potassium and mixed fertilizers represented almost 40% of all Latin American imports from Russia in 2019. Rising prices and possible long-term shortages could therefore have a direct impact on regional agriculture, affecting the production of food and crop products.
Furthermore, both Russia and Ukraine export a wide range of metals to Latin America. In 2019, semi-finished steel accounted for 15% of imports from Russia, making it the first metal and the second product in general that this country sells to the region.
