Berliner Boersenzeitung - Arabs fear for wheat supplies after Russia invades Ukraine

EUR -
AED 3.82149
AFN 73.041433
ALL 98.55892
AMD 415.721985
ANG 1.87395
AOA 948.863211
ARS 1066.595859
AUD 1.667379
AWG 1.872757
AZN 1.76665
BAM 1.956393
BBD 2.099416
BDT 124.252877
BGN 1.957548
BHD 0.392547
BIF 3074.702209
BMD 1.04042
BND 1.412915
BOB 7.185177
BRL 6.426779
BSD 1.039805
BTN 88.508971
BWP 14.441237
BYN 3.402798
BYR 20392.23769
BZD 2.092314
CAD 1.494665
CDF 2986.006583
CHF 0.936999
CLF 0.037354
CLP 1030.723435
CNY 7.590496
CNH 7.601534
COP 4550.704712
CRC 527.954918
CUC 1.04042
CUP 27.571138
CVE 110.294183
CZK 25.112052
DJF 184.903571
DKK 7.464496
DOP 63.339194
DZD 140.460985
EGP 52.914317
ERN 15.606304
ETB 132.393121
FJD 2.412371
FKP 0.823994
GBP 0.829996
GEL 2.923886
GGP 0.823994
GHS 15.284632
GIP 0.823994
GMD 74.909813
GNF 8986.377753
GTQ 8.00935
GYD 217.545925
HKD 8.081667
HNL 26.419006
HRK 7.462837
HTG 135.959895
HUF 411.759841
IDR 16830.931058
ILS 3.797779
IMP 0.823994
INR 88.624821
IQD 1362.112776
IRR 43788.690905
ISK 145.190824
JEP 0.823994
JMD 162.002865
JOD 0.737968
JPY 163.685187
KES 134.38118
KGS 90.51648
KHR 4179.22631
KMF 484.965928
KPW 936.37768
KRW 1517.400665
KWD 0.320637
KYD 0.866554
KZT 538.668061
LAK 22739.672498
LBP 93114.317485
LKR 306.441083
LRD 189.24553
LSL 19.334273
LTL 3.07209
LVL 0.62934
LYD 5.104351
MAD 10.485474
MDL 19.184629
MGA 4904.439109
MKD 61.579469
MMK 3379.244519
MNT 3535.348011
MOP 8.318241
MRU 41.506983
MUR 48.972477
MVR 16.024479
MWK 1803.046398
MXN 21.002705
MYR 4.668339
MZN 66.486737
NAD 19.334459
NGN 1604.255567
NIO 38.261595
NOK 11.813837
NPR 141.614554
NZD 1.843034
OMR 0.399934
PAB 1.039815
PEN 3.871824
PGK 4.220117
PHP 61.176038
PKR 289.469892
PLN 4.26282
PYG 8109.457501
QAR 3.781746
RON 4.977686
RSD 116.881322
RUB 103.94356
RWF 1450.525627
SAR 3.905049
SBD 8.722421
SCR 14.50686
SDG 625.81609
SEK 11.528252
SGD 1.415175
SHP 0.823994
SLE 23.718639
SLL 21817.096429
SOS 594.274378
SRD 36.475085
STD 21534.59941
SVC 9.098407
SYP 2614.087445
SZL 19.342676
THB 35.556355
TJS 11.375447
TMT 3.651875
TND 3.315505
TOP 2.436769
TRY 36.611485
TTD 7.066073
TWD 33.958811
TZS 2517.817245
UAH 43.597336
UGX 3806.116828
USD 1.04042
UYU 46.282246
UZS 13423.551809
VES 53.660282
VND 26468.292186
VUV 123.520781
WST 2.87446
XAF 656.149534
XAG 0.035161
XAU 0.000398
XCD 2.811788
XDR 0.797234
XOF 656.130609
XPF 119.331742
YER 260.495182
ZAR 19.412609
ZMK 9365.027402
ZMW 28.776721
ZWL 335.014909
  • RBGPF

    -0.7000

    59.8

    -1.17%

  • NGG

    -0.1600

    58.86

    -0.27%

  • RIO

    -0.0300

    59.2

    -0.05%

  • VOD

    0.0600

    8.43

    +0.71%

  • BTI

    0.0400

    36.26

    +0.11%

  • GSK

    -0.0300

    34.03

    -0.09%

  • RELX

    0.3000

    45.89

    +0.65%

  • BP

    0.0400

    28.79

    +0.14%

  • SCS

    0.0800

    11.73

    +0.68%

  • RYCEF

    0.0000

    7.25

    0%

  • CMSC

    -0.1321

    23.77

    -0.56%

  • AZN

    -0.3300

    66.3

    -0.5%

  • BCE

    0.0600

    22.9

    +0.26%

  • BCC

    0.9500

    123.19

    +0.77%

  • JRI

    0.0500

    12.15

    +0.41%

  • CMSD

    0.1000

    23.65

    +0.42%

Arabs fear for wheat supplies after Russia invades Ukraine
Arabs fear for wheat supplies after Russia invades Ukraine

Arabs fear for wheat supplies after Russia invades Ukraine

Russia's invasion of Ukraine could mean less bread on the table in Egypt, Lebanon, Yemen and elsewhere in the Arab world where millions already struggle to survive.

Text size:

The region is heavily dependent on wheat supplies from the two countries which are now at war, and any shortages of the staple food have potential to bring unrest.

If those supplies are disrupted, "the Ukraine crisis could trigger renewed protests and instability" in several Middle East and North Africa countries, the Washington-based Middle East Institute said.

The generals now ruling in Khartoum after an October coup have not forgotten: In 2019 one of their own, Field Marshall Omar al-Bashir, Sudan's longtime autocrat, was toppled by his military under pressure from mass demonstrations triggered by a tripling of the bread price.

Sudan is already facing regular anti-coup protests but seems to have taken the initiative to avoid demonstrations over bread.

When Russia's invasion began on Thursday, the second-highest figure in Sudan's ruling Sovereign Council was in Moscow to discuss trade ties.

Bread is already a luxury for millions in Yemen, where a seven-year war has pushed the country to the brink of famine.

"Most people can barely afford the basic foods," and the war in Ukraine will only "make things worse", Walid Salah, 35, a civil servant in the rebel-held capital Sanaa, told AFP.

Russia is the world's top wheat exporter and Ukraine the fourth, according to estimates by the US Department of Agriculture.

Moscow's invasion pushed the wheat price far above its previous record high in European trading to 344 euros ($384) a tonne on Thursday.

David Beasley, the World Food Programme's executive director, said the Ukraine-Russia area provides half the agency's grains. The war, he said, "is going to have a dramatic impact".

- 'Supplies won't last' -

WFP says 12.4 million people in conflict-ravaged Syria are also struggling with food insecurity.

Before its civil war began in 2011, Syria produced enough wheat to feed its population but harvests then plunged and led to increased reliance on imports.

The Damascus regime is a staunch ally of Moscow which backed it militarily during the war.

"Syria imported some 1.5 million tonnes of wheat last year, largely from Russia," The Syria Report, an economic publication, said this month.

Damascus says it is now working to distribute the stocks to use them over two months.

Supplies in neighbouring Lebanon won't last that long.

The country is gripped by a financial crisis which has left more than 80 percent of the population in poverty, and a 2020 port explosion damaged large parts of Beirut including silos containing 45,000 tonnes of grain.

Lebanon's current stock, in addition to five ships from Ukraine waiting to be offloaded, "can only last for one month and a half", said Ahmad Hoteit, the representative of Lebanon's wheat importers.

Ukraine was the source of 80 percent of the 600,000 to 650,000 tonnes of wheat imported annually by Lebanon, which has only been able to store about a month's worth of wheat since the port blast, he told AFP.

The United States can be an alternate supplier but shipments could take up to 25 days instead of seven, Hoteit said.

In the Maghreb, where wheat is the basis for couscous as well as bread, Morocco's minister in charge of budget, Fouzi Lekjaa, told journalists the government would increase subsidies on flour to $400 million this year and stop charging import duties on wheat.

Nearby Tunisia, with heavy debts and limited currency reserves, doesn't have that luxury. In December, local media reported that ships delivering wheat had refused to unload their cargo as they had not been paid.

Tunisia relies on Ukrainian and Russian imports for 60 percent of its total wheat consumption, according to agriculture ministry expert Abdelhalim Gasmi. He said current stocks are sufficient until June.

- 'Bread riots' -

Neighbouring Algeria, which says it has a six-month supply, is Africa's second-largest wheat consumer and the world's fifth-largest cereals importer.

Egypt imports the most wheat in the world and is Russia's second-largest customer. It bought 3.5 million tonnes in mid-January, according to S&P Global.

The Arab world's most populous country has started to buy elsewhere, particularly Romania, but 80 percent of its imports have come from Russia and Ukraine.

Egypt still has nine months of stock to feed its more than 100 million people, government spokesman Nader Saad said. But he added: "We will no longer be able to buy at the price before the crisis."

That is an ominous sign for the 70 percent of the population who receive five subsidised breads a day.

The weight of the subsidised round food was reduced in 2020 and now the government is considering raising the price -- fixed at five piastres (0.3 cents) for the past three decades -- to get closer to the production cost.

When then-president Anwar Sadat tried to drop the subsidy on bread in January 1977 "bread riots" erupted. They stopped when he cancelled the increase.

burs-sbh/it/dv

(T.Burkhard--BBZ)