The finance ministers and central bank presidents of the G20 hold various meetings in Indonesia this Friday to analyze the Global impact of the Russian invasion of Ukraine, between warnings from the host country about the need to face the energy and food crises. In this sense, Australia has been one of the representatives of the summit that has sounded the alarm about the global situation that exists at the moment.
The oceanic country has seriously warned of what is to come. In his speech at the G20 meeting in Indonesia, the oceanic country today blamed the Russian war in Ukraine for the crisis world food and energy indicating that the current economic instability is not due to the sanctions approved against Moscow.
Australia points to invasion and not sanctions
The Australian Treasury Minister, Jim Chalmers, has been blunt during the meeting of the heads of Finance and Economy and governors of central banks of the G20 that is being held on the Indonesian island of Bali. “It is the invasion by Russia that has undermined energy and food security and not the sanctions, and therefore Russia must take full responsibility for this.” “The global economic situation has deteriorated and we are entering a difficult phase, if not dangerous, with costs and consequences for all”Chalmers underlined.
Threat of recession and suspension of payments
The war in Ukraine and its consequences at all levels are marking the summit that the G20 is holding these days in Indonesia. The great world powers are showing their concern about the growing global social instability and the difficulty of some countries to pay their sovereign debtsas is the case in Sri Lanka.
We must remember that this issue, that countries can meet their payment obligations, is a matter of concern in the economic world. Are Several countries are facing problems to meet their creditors. Even Bloomberg has dared to predict which are the countries that are in the worst situation and that are at risk of entering default.
energy crisis in Europe
In addition to the food crisis, the economic volatility in some countries is compounded by the existing concern in Europe about the possible permanent gas cut that Russia may soon make. EU member states fear that Moscow’s announced maintenance of the Nord Stream gas pipeline, which has cut off gas supplies mainly to Germany, will become permanent and gas shortages will be a fact sooner rather than later.
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