The World Trade Organisation has warned that the conflict between Russia-Ukraine will have severe trade implications on agriculture and energy prices.
This was disclosed by the Director-General of the World Trade Organisation and former Nigerian Finance Minister, Dr. Ngozi Okonjo-Iweala.
She added that the WTO is worried about the continued violence in Ukraine.
What Okonjo-Iweala is saying
Okonjo-Iweala said, “At the WTO, we have watched this tragedy in Ukraine unfold with disbelief and the hope that it would have been peacefully resolved.
“However, this is now the 7th day and we are deeply saddened by the continued suffering and loss of life.”
She added that WTO hopes there will be a peaceful and quick resolution.
“We are also concerned about the trade implications of the conflict, especially trade in agriculture and food products and the rise in energy prices and their effects on the impacted population,” she added.
What you should know
- Recall Nairametrics reported earlier that the price of wheat has been surging to multi-year highs since Russia began a special military operation in Ukraine, signaling the start of a full-blown invasion of its neighbour.
- The rally in the price of wheat is as a result of investors’ worry about a potential supply disruption, being that Russia is the top wheat exporter in the world, accounting for 24% of the total wheat exports in the world.
- Wheat futures trading on the Chicago Board of Trade is trading at their highest levels since the global financial crisis of 2008, in response to war in Ukraine.
- As of the time of this writing, the United States’ wheat futures is currently up 5.37%, currently trading $984.12 basis point, its highest since February 2008.