How the “interdependence” of Russia and the West in the global food system began (and what is its impact on the war in Ukraine) (BBC World News)

BBC World News (Spanish version) published an article stating that Russia’s invasion of Ukraine has laid bare an international landscape marked by a “new Iron Curtain” separating Russia from the West that some experts fear could trigger a global food crisis. A humanitarian catastrophe is looming. Senior research fellow Joseph Glauber says that “it is important to understand that we are talking about global markets, so even countries that do not import from Ukraine or Russia are experiencing an increase in the price of wheat or sunflower oil.” In 2014, after Russia’s annexation of Crimea, Russia began to invest heavily in food self-sufficiency and in its economic relationship with the former Soviet republics, which progressively became its main partners for food trade. All those deals and investments paid off. “Investors came to Russia and managed to increase productivity to record levels in the region, with a better use of resources and machinery. The market and transport infrastructure grew. Russia’s and Ukraine’s trade with the rest of the world improved significantly. It was a very radical change that took place mainly in just two decades that shows the dynamism of the markets.” Glauber said, “The EU made some changes in the regulations to be able to import grain from Latin America, which could have positive effects in countries like Argentina or Brazil, which are large producers.” The question of fertilizer is also important because its lack could exacerbate a crisis in the global food system. Russia exports the three main types of fertilizers – nitrogen, phosphorous and potassium, Glauber notes. It represents 15 percent of world trade in nitrogenous fertilizers and 17 percent of world exports of potassium fertilizers, according to data from the United Nations. Along with Canada and the United States, it is one of the largest suppliers of fertilizers for all of Latin America. (See also, IFPRI blog post, High fertilizer prices contribute to rising global food security concerns)