More than 40 million people will be pushed into extreme poverty as a result of rises in food and energy prices caused by the war, said a US think tank.
“Russia’s invasion of Ukraine has sparked significant rises in energy and food prices. Our analysis suggests the scale of price spike will push over 40 million into extreme poverty,” said the Center for Global Development.
Russia and Ukraine export 19 percent and 10 percent, respectively, of globally traded wheat, said the Center.
“Amongst importers, vulnerability to the impacts of rising global grain prices will largely depend upon poverty. Households from poorer countries spend much more of their income on food, with families in low-income countries allocating almost half (45 percent) of their budgets to food.”
The Center advised the G20 and other grain producers to keep markets open and avoid sanctions on food, even if further disruptions arise, to avoid artificially exacerbating the impacts.