Implications of Russia’s invasion of Ukraine for global food markets and food policies

On 31 March 2022 from 16.00 – 17.00 hours a webinar on this theme was organised by WUR and Kyiv School of Economics (KSE). This webinar identified the major implications of Russia’s invasion of Ukraine on international agri-food markets and food security from the Ukrainian, Dutch, EU and Middle Eastern perspectives. It advanced common expertise and Pan-European research community by linking Ukrainian economists to West-European economists and policy makers. At the start of the webinar, a series of short pitch presentations given by a broad group of stakeholders set the scene after which the discussion with the webinar audience was opened.

The Kyiv School of Economics (KSE, Ukraine), WUR, Leibniz Institute of Agricultural Development in Transition Economies (IAMO, Germany), and the German-Ukrainian Agricultural Policy Dialogue (APD, Ukraine) jointly organise a series of online panel discussions “Is Russia’s invasion of Ukraine changing agrifood markets as we know them?” The aim of these events is to accumulate in-depth knowledge and evidence on the current threats and forecasts regarding the war’s impact on local and global agrifood markets, and provide the public with professional expertise on the issue. This will be the first webinar in this series.

Background information

Russia’s invasion of Ukraine, which started on February 24th this year has brought serious problems to the Ukrainian agricultural industry. In 2014, when Crimean peninsula was annexed by Russia and Russian backed conflict started in Donbas, farming operations in these regions were severely damaged. The current situation, however, puts agriculture in the entire country at risk. Airstrikes, occupation and active military battles, which, by the end of March, are happening mainly in Southern, Eastern and Northern regions are serious threats to the 2022’s sowing and harvesting campaigns. The latter is affected by inputs supply and logistics complications as well.

Over recent years, Ukraine has become a significant player on global agricultural markets. Today, it accounts for nearly 10% of world wheat exports, 15% of corn exports and more than 15% of Barley exports in world markets. When considering sunflower oil, Ukraine alone amounts to nearly 50% of world exports. Besides grains and oilseeds trade, Ukrainian agriculture plays an important role in both local and global food security.

Russia, in turn, is another large supplier of grains and oils to the world market. It makes up 18% of world wheat and 25% of world sunflower oil exports. Due to the current and potential economic sanctions imposed by Russia’s trade partners over its Ukraine invasion and war crimes, Russia itself may face the disturbances in the agro-food supply chains. In the worst-case scenario, if Russia were to occupy Ukraine and absorb its economy, it may become the major superpower in the world’s agricultural commodity markets.

In light of the above, well-known experts, representing various fields of competence and geographic regions, are going to examine and discuss the short- and longer-term implications of Russia’s invasion of Ukraine on availability and prices of agricultural commodities, patterns of trade, agricultural input industries, national food policies and many other aspects.