Watch: Expect Costlier Milk, Bread And Other Foods After Ukraine Invasion, Maltese Minister Warns
Russia’s invasion of Ukraine is set to have a ripple effect leading to higher food prices in Malta and around the world, Foreign Affairs Minister Evarist Bartolo has warned.
Interviewed by Lovin Malta, Bartolo noted that Russia and Ukraine are both among the world’s top five wheat exporters.
“Russia is one of the world’s major wheat exporters and one must see what effects its disengagement from the SWIFT payment system will have and how it will impact the amount of wheat that can be exported,” he said.
“If Ukraine cannot harvest and export wheat, there will be a shortage and if there’s a shortage, prices will go up. Apart from the human tragedy, deaths and sufferings in Ukraine, the war will have regional and global economic consequences.”
“When wheat goes up in price, there will be pressures on prices to increase right across the food chain, such as milk, flour, pasta, bread, as well as a [higher] cost of production because of energy.”
“The world is in for another big challenge. Just when we thought we were emerging from the storm of COVID-19, we are faced with this.”
“The human tragedy [of the Ukraine invasion] must always engage our attention and we must do all we can to stop the bloodshed and help those who are suffering, but perhaps people haven’t yet realised that beyond that, the economic consequences are huge.”
Bartolo noted that global inflation was already problematic before the invasion, with statistics showing food prices increased to the highest level in 30 years, while energy costs and transport costs multiplied by between five and seven times.
He warned that Malta is one of the most exposed countries in the world to inflation, given the reality that it has to import practically all goods and ship out products for export.
However, he played down concerns that electricity bills could imminently increase, noting that the government has pledged to continue utilising national reserves to prevent this from happening.
Are you concerned that food could become more expensive in the coming months?
READ NEXT: Maltese State Sued By Miriam Pace's Family For Failing To Ensure Her Safety
