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March 4,2022

Anna Murray 

On March 4th, World Bank President David Malpass warned that Russia's invasion of Ukraine is a "catastrophe" for the world, threatening global economic development and causing a "massive supply shock" affecting global oil and food supplies. 

According to S&P Global Platts, Ukraine is the world's largest producer of sunflower oil, followed by Russia. They account for 60 percent of global production. According to JP Morgan, the two countries account for 28.9% of worldwide wheat exports.

David Malpass pointed out that the war in Ukraine comes at a horrible moment for the world as inflation was already growing, and the economic impact of the war extends beyond Ukraine's borders, with global oil price hikes, as well as inflation, disproportionately affecting the poor.

Furthermore, the intensification of the situation in Ukraine worried investors. Since the onset of the global pandemic in March 2020, the London stock market has seen its largest weekly losses.

The World Bank is putting up a $350 million aid package for Ukraine to keep everything from falling apart, which is expected to be approved in the coming days. The money will be used to assist pay for government salaries, social welfare, and emergency supplies, as tax revenues have fallen for the war.