Damascus-SANA
The effects and negative economic repercussions of the Ukrainian crisis are increasing day by day, especially after the European countries imposed sanctions on Russia, ignoring the great negative risks to global economic balances.
Press reports stated in this context that the economic sanctions packages imposed on Russia by the United States and the European Union led to a sharp and record rise in the prices of oil, gas, minerals, grains and food commodities around the world, where the price of Brent crude exceeded during yesterday’s trading of $ 118 a barrel, which is the highest level reached by crude contracts Since 2008, while gas prices in Europe have risen above $2,100 per thousand cubic meters, gold has jumped to about $2,000 an ounce, and other psychological metals such as silver, aluminum, nickel and palladium have seen similar sharp increases.
As for cereals, led by wheat, its price for the next May contracts rose to a record level of $11.34 per bushel for the first time since 2008, due to fears of supply disruptions and crop shortages, while the price of wheat in Europe reached 344 euros per ton at Euronext Group, which operates a number of stock exchanges. European.
In addition, economists talked yesterday about huge losses that the global economy will suffer as a result of the current situation, as they expected losses of no less than 400 billion dollars.
In an analysis conducted by the Economic Information Unit (AEU), it confirmed that the growth of the global economy is expected to suffer a major blow, pointing out that European countries will be the most vulnerable to economic impact.
The unit said that the rise in commodity prices, including oil, is the most serious threat to the global economy, and that sanctions against Russia would disrupt trade routes, and Eastern European countries most dependent on Russian trade, such as Lithuania and Latvia, would be hit hard.
Faced with this situation, the unit lowered its growth forecast for Europe in 2022 to 2 percent from 3.9 percent.
The National Institute for Economic and Social Research in Britain warned in a report that the global economy could lose up to a trillion dollars this year due to the events in Ukraine.
The report also warned of a 3 percent increase in inflation this year.
Returning to oil prices, which is most affected by the current international situation, the Russian Kremlin warned of the repercussions of imposing restrictions on the purchase of Russian oil, stressing that imposing such a ban would have serious consequences for the volatility of global energy markets.
Meanwhile, the editor-in-chief of the "Geo Energetica" website, which specializes in energy affairs, Boris Martsinkevich, stressed the impossibility of replacing Russian natural gas and oil in global markets, pointing out that there is a change in the world's energy map.
Martsinkevich made a presentation to the global energy market, especially after Western sanctions were imposed on Russia, explaining that Russian oil of the “Urals” brand is heavy oil, while oil produced in the United States is light.
He pointed out in a video post that oil refineries in the United States depend on heavy oil, especially from Russia, noting that the importance of Russian oil emerged after Washington imposed sanctions on Venezuela and Iran, likening the American move to the person who shoots himself in the foot.
American businessman Elon Musk also called for an immediate increase in oil and gas production, stressing that green energy cannot immediately replace Russian hydrocarbon exports.
Mohammed Jassim