We never would have wanted it; speak, give opinions, write about a war like the one that has already begun to rage for two days in Ukraine, a barbarism that takes us back to the history of the worst chapters of the last century. And the fact is that armed conflict is never the solution. Especially, and in the first place, by the population that experiences it in the first person; the loss of large human lives or their forced displacement, as well as the material destruction that they entail.
Also and of course, due to the innumerable consequences for the different affected economies. In a key year for the consolidation of the economic recovery in Spain after the pandemic, this contest undoubtedly adds a problem to the already perfect storm that is compromising it, such as the increase in logistics and raw material costs, as well as the shortage of the latter and the lack of qualified personnel.
Already in the specific case of Galicia, the commercial relations of our companies with the Russian market have been increasing continuously in recent years, although with the logical setback in 2020 due to the start of the health crisis. In any case, exports to Russia from our community are led by consumer goods, while imports are led by intermediate goods. More than 27% of the total exports of our community to the republic in the last year -and according to data from the IGE-, corresponded to products from the chemical industries, followed by more than 26% of the total exports of textiles and its manufactures, specifically clothing and clothing accessories.
It should also be borne in mind that Ukraine is one of the largest exporters of wheat worldwide. And that is why Spanish and Galician farmers and ranchers ask the European Union not to look the other way. The entire country depends on Ukraine – the breadbasket of Europe – for wheat, corn and also fertilizers. A cut in supplies would be another brake on the recovery for this sector.
We are also concerned about the consequences of the conflict in the Galician industry. And it is that in addition to the automotive industry, very present in these enclaves, the maritime-naval industry is also increasingly preponderant, and companies dedicated to industrial pipes are also working in the conflicting countries.
Of course, special mention deserves the fact that after the outbreak of the war in Ukraine, the rise in gas and oil prices – above the barrier of 100 dollars – threatens gasoline and the electricity bill . Germany’s refusal to certify the Nord Stream 2 gas pipeline -designed to transport gas directly from Russia to Germany through the Baltic Sea-, will probably cause a shortage and further increase in the price of this raw material. And although it will probably affect the supply of Northern Europe more directly, it is an added problem due to the disagreements between Morocco and Algeria, the latter closed the Maghreb-Europe gas pipeline that affects our country more than fully.
Therefore, we find ourselves in a very complex and worrying moment, which we hope can be lessened through dialogue and sanity.
