The importance of Ukraine and the Russian Federation for global agricultural markets and the risks associated with the current conflict

The importance of Ukraine and the Russian Federation for global agricultural markets and the risks associated with the current conflict Information Note The importance of Ukraine and the Russian Federation for global agricultural markets and the risks associated with the current conflict 25 March 2022 Update Executive Summary 1. [...] Among other points, the decision underscored the need to preserve the security of international shipping and the maritime community, the supply chains that sustain other nations, and supply chains providing necessary food and medicines to Ukraine.6 Many international companies in the grain and oilseed export sectors have also stopped operating in Ukraine to protect the safety of their employees. [...] 2.5.2 Gauging the possible effects of the conflict on international food security The 2021 edition of the report on the State of Food Security and Nutrition in the World (SOFI), released in July 2021, estimated that world hunger increased in 2020, under the shadow of the COVID-19 pandemic. [...] This is particularly the case for countries in Central Asia, as the weakening of the economic activity in the Russian Federation and the depreciation of the rouble against the United States dollar could reduce remittance flows. [...] On 17 March, the Organization for Economic Co-operation and Development (OECD) issued a first assessment of the impact of the conflict on the global economy, highlighting that the conflict has generated a new negative supply shock on the world economy.24 Although the assessment notes that Ukraine and the Russian Federation only account for close to two percent of both global GDP and world trade, i.