The war impact is already lurking outside fighting countries as the developed world unlearns civility and sinks to the brink of a third world war. Ethiopia is no exception, with a significant impact on foreign trade projected.
According to The Reporter Newspaper article, here are a few ways how it could affect Ethiopia’s economy:
- Russia is the second-largest oil producer, next to Saudi Arabia and the surge in oil prices is devastating for Ethiopia (and globally).
- Ukraine and Russia command the international wheat market, constituting 30 percent of the supply share.
- The wheat supply issue will not only affect government wheat purchase but also humanitarian crisis as many NGOs buy wheat to address the crisis in Ethiopia.
- Germany might downsize its coffee import from Ethiopia – it buys 40% of Ethiopia’s coffee, and after processing it, exports the coffee to other markets including Russia.
- Capital goods and especially metal products are imported from Ukraine and Russia.
- Ukraine is the second source of Ethiopia’s import from Europe (12.8%) in 2020/21, Russia constitutes 3.8% of the total import.
Explosions were reported in Ukraine’s second-largest city and near Kyiv as peace talks between Russia and Ukraine ended without a breakthrough on Monday.
The US said Monday morning that all American corporations would be barred from working with Russia’s key banks, and that the assets of a Putin associate would be frozen. Switzerland, in a historic breach from its neutrality, stated that it would sanction Russia as well.
The views and opinions expressed in this information are those of the authors and do not necessarily represent the official view of BIE Intelligence PLC or Business Info Ethiopia.
The opinions expresses here in the post "How the Ukraine-Russia War Can Affect Ethiopia's Economy?" are those of the individua's contributor(s) and do not necessarily reflect the views of Business Info Ethiopia , BIE Intelligence PLC, its publisher, editor, or any of its other contributors.