King Salman Shouts, Arabs Become Victims of the Russo-Ukrainian War

Jakarta, CNBC Indonesia – Saudi ArabiaKing’s state Salman bin Abdulaziz al-Saud, began to speak out about his concerns after the Russo-Ukrainian war. This was conveyed directly by the country’s Minister of Finance (Menkeu), Mohammed Al Jadaan.

On the sidelines of the World Economic Forum (WEF), Al Jadaan said that Saudi Arabia’s biggest fear after the war was rising food prices. This is because Russia and Ukraine are significant food exporters to the world, especially the Middle East and Africa.

“I think this is a very serious problem. The food crisis is real. I think it is still being underestimated by the world community,” Al Jadaan told CNBC InternationalWednesday (25/5/2022).

“The Middle East and Africa region is very, very, very vulnerable. It imports a lot of food, representing 26% of the world’s population.”

Before the war, more than 95% of Ukraine’s total grain, wheat and corn exports were shipped via the Black Sea. Half of that figure is sent to Middle Eastern and African countries.

But currently, the vital channel via the Port of Odessa is now closed. This is stifling maritime trade in Kyiv and some of the world’s countries. In fact, in lower-middle income countries, high inflation has started to occur.

Saudi Arabia itself, in late March, pledged $15 billion in economic aid to Egypt. The funds were channeled to help the Middle East’s most populous nation, which is currently being hit hard by record grain prices due to the war.

Egypt is known to import 80% of its wheat from Ukraine and Russia. Lebanon, which has endured years of debt and inflation crises, imports 60% of its wheat from the two warring countries.

“So we have to be very careful with what happens in the region,” Al Jadaan added.

“We will provide as much necessary support as we can, but it’s not just us, it’s a global problem we need to work with the world to come up with a solution.”

The war between Russia and Ukraine has been going on since February 24. So far, no peace agreement has been reached.

According to a World Bank report published in April, the recent increase in global food prices was the largest since 2008. Food costs are projected to increase by 22.9% this year due to a 40% increase in wheat prices.

[Gambas:Video CNBC]