World Bank adds 12 billion USD to solve global food crisis

The World Bank has announced it will provide $30 billion to help avert the risk of a food security crisis caused by the Russia-Ukraine war, as tensions have disrupted most of the two countries’ grain exports.

Specifically, the $30 billion will include $12 billion for new projects, and more than $18 billion for existing food and nutrition-related projects that have been approved but not yet disbursed, the World Bank said.

The increase in food prices is having a devastating effect on the poor and vulnerable, said World Bank Group President David Malpass. In order to provide information and stabilize the market, it is important for countries to clearly state now about future production increases in response to the Russia-Ukraine crisis.

The WB representative added that the new projects are expected to support agriculture, social protection to reduce the impact of higher food prices on the poor, as well as water and irrigation projects. Most of this will go to Africa, the Middle East, Eastern Europe, Central Asia and South Asia.

These regions are among the hardest hit by the impact of the war in Ukraine on grain supplies. Countries like Egypt rely heavily on wheat from Ukraine and Russia and are competing for supplies, as hostilities have made it impossible for Ukraine to export agricultural products from Black Sea ports, and Russia has imposed restrictions restrictions on domestic exports.

Earlier, organizations warned that the global supply of wheat in stockpiles was only 10 weeks away. Russia and Ukraine account for about a quarter of the world’s wheat exports.

In addition to the World Bank, the European Bank for Reconstruction and Development plans to provide 500 million euros ($523.5 million) in plans to ensure food security and trade finance for agricultural products. industry and food, part of a 2 billion euro package for Ukraine and neighboring countries affected by the war, according to a report by the US Treasury Department. Of which, Ukraine will receive 200 million euros and neighboring countries will receive 300 million euros.

In addition, the International Monetary Fund will provide financial support through the usual channels.