Ukraine Conflict’s Economic Tremors Felt Across Middle East

Date: 09 March 2022 - 22:15

News ID: ۱۰۰۸۳۰

BEIRUT (Dispatches) – Lebanese Minister of Economy and Trade Amin Salam has met with the ambassadors of Turkey and India and discussed ways to support Lebanon during the supply crisis resulting from the Russian military operation in Ukraine, Anadolu reported.
A statement issued by the Ministry of Economy quoted Salam as saying that the meetings aimed “to complement efforts to confront the repercussions of the crisis in Ukraine, and in the interest of food security.”
“Salam has met in his office with the Indian Ambassador to Lebanon, Dr. Sohel Ajaz Khan, who reassured him that India has sufficient reserve stocks to secure the quantities required for the local market,” the statement said.
“The Lebanese minister also received Turkey’s Ambassador to Beirut, Ali Baris Ulusoy and discussed with him ways through which Turkey could support Lebanon during the crisis,” the statement added.
Meanwhile, protests erupted Wednesday in Iraq’s impoverished south over a rise in food prices that officials say is caused by the conflict in Ukraine.
For about a week, the price of cooking oils and flour have skyrocketed in local markets as government officials have sought to address growing anger with various statements and measures.
More than 500 protesters gathered in a central square in the southern city of Nasiriyah -- a flashpoint of protests that gripped the country in 2019.
“The rise in prices is strangling us, whether it is bread or other food products,” retired teacher Hassan Kazem said. “We can barely make ends meet.”
On Tuesday, the Iraqi government announced measures to confront the increase in international prices.
These included a monthly allowance of about $70 for pensioners whose income does not exceed one million dinars (almost $700), as well as civil servants earning less than 500,000 dinars.
Meanwhile, meat prices are expected to rise about 50 percent in Egypt, the head of the Egyptian Farmers’ Syndicate announced on Tuesday.
Hussein Abu Saddam told local media that Egypt imports more than 50 percent of its meat, poultry and fish and this was causing prices to increase.
“The rise will include all types of meat and dairy products as prices increase on breeders,” Abu Saddam pointed out, adding that the price of rice crop would also increase due to its “gluttony for water.”
The official noted that the price of yellow corn, one of the most important fodders, had risen from “4,000 Egyptian pounds ($254) to 8,000 pounds ($508).” “Even wheat bran rose over the last three days from 5,000 Egyptian pounds ($318.25) to 5,600 pounds ($356),” he said.
Finance Minister Mohamed Maait recently warned that the cost of imported wheat would rise by 12-15 billion Egyptian pounds ($763-$954 million) in the state budget, following the Ukraine conflict.
Bread prices were recently reported to have surged, sparking a wave of anger among Egyptians. The government has, however, pledged to control the price of subsidized bread.
Analysts predict another ten percent increase in gasoline prices in April, which would increase the prices of public and private transportation, as well as the prices of all commodities.