World Bank to offer $30 billion as Ukraine war threatens food security
The World Bank said on Wednesday it would provide $30 billion to help avert a food security crisis jeopardized by Russia’s war in Ukraine, which has cut most grain exports from the two countries.
The bank said the total would include $12 billion in new projects and more than $18 billion in funding from existing food and nutrition-related projects that have been approved but not yet delivered.
“The rise in food prices is having a devastating impact on the poorest and most vulnerable,” World Bank Group President David Malpass said in a statement. “To inform and stabilize markets, it is important that countries make clear statements about future production increases in response to Russia’s invasion of Ukraine.”
The new projects are expected to support agriculture, social security to reduce the impact of high food prices on the poor, and water and irrigation projects, the bank said. Most of the resources are going to Africa and the Middle East, Eastern Europe and Central Asia, and South Asia.
These regions are most affected by the impact on the war grain supply in Ukraine. Countries such as Egypt are highly dependent on Ukrainian and Russian wheat and are scrambling for supplies as Russia has blocked Ukraine’s agricultural exports from Black Sea ports and imposed domestic export restrictions.
The World Bank plans were the largest component of a US Treasury Department report summarizing food security action plans from international financial institutions released on Wednesday.
The European Bank for Reconstruction and Development plans to provide 500 million euros ($523.50 million) for food security and trade finance for agriculture and food products out of a 2 billion euro package for Ukraine and war-ravaged neighboring countries. is, the Treasury report said. Ukraine will get 200 million euros and neighboring countries 300 million euros.
The International Monetary Fund will provide financing assistance through its usual channels, which are limited by the countries’ shareholding and whether their debt is considered permanent.
($1 = 0.9551 Euro)
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