Page 49 - Nigeria one mag 4 edition en

dramatic product shortages and cost
increases throughout the world. The
Covid-19 pandemic has pushed supply
chain disruptions into new territory
throughout the last few years,
exacerbated by the trade wars in 2018
and 2019.
A Russian invasion of Ukraine in
February 2022 was clearly not the only
contributing factor to the current global
supply chain crisis. However, it
heightened it exponentially. Several
sanctions have been imposed on Russia
following the invasion, causing critical
logistics and trade routes to be
hampered. In turn, this is posing a
threat to the supply of key food
resources like wheat, raising the
possibility of global famine. As a result
of disruptions in the flow of electronics,
raw materials, and parts supplies
originating from China and other
locales, global trade positions have been
severely affected, forcing companies to
reconfigure their long-standing supply
chains and partner ecosystems and, in
some cases, completely overhaul them.
One of the most alarming consequences
of the Russia-Ukraine war is food
shortages, particularly in low-income
countries in Africa. About a third of the
World's wheat and a quarter of its
barley are produced by Ukraine and
Russia, not to mention around 75% of
the sunflower oil supply.
An intensified or prolonged war may
result in more economic and
environmental damage, as well as more
fragmentation of trade and investment.
As debt levels and inflation rise, the risk
of financial stress also rises.
Governments and businesses must find
new ways to collaborate to avert a
humanitarian disaster caused by
Russian sanctions, blocked Ukrainian
ports, and farmers unable to work the
fields. Actions that must be taken
include reevaluating supply chain
positions and adjusting, as well as
considering alternative sourcing.
The Skytower, current headquarters of the ECB in Frankfurt am Main.

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