Putin names ‘root cause’ of global food and energy crisis
The root cause of the current problems on the global food and energy markets dates back to the coronavirus pandemic, rather than the conflict in Ukraine, Russian President Vladimir Putin has said.
Speaking at the Russia-Africa Summit on Friday, Putin pointed to the financial and energy policy decisions made by the US and EU nations during the pandemic in 2020-2021.
Numerous countries chose to support their economy and population during lockdowns by printing more money, which according to Putin was a mistake.
“The US created a colossal amount of money, and so did the Eurozone countries, although on a slightly smaller scale. They used this money to buy up food on the global markets, and as a result, the prices shot up,” the Russian leader stated.
Putin also accused the West of pursuing a “short-sighted energy policy,” which involves shunning fossil fuels and failing to invest in the non-renewable energy sector, and instead relying on alternative energy sources that are not yet advanced enough to meet demand. According to Putin, this has sent energy and fertilizer prices soaring.
“They made one mistake after another. Those were fundamental things that shook food markets, fertilizer markets, and energy markets. This is the root cause of rising prices. Clearly, the current events in Ukraine are nurturing these processes to some extent, but they are not the root cause. The root cause lies in the mistakes that the developed countries made in their financial and energy policies,” the Russian leader concluded.
World food and energy prices saw a major increase in 2022 following the start of Moscow’s military operation in Ukraine and the introduction of a barrage of Western sanctions against Russia, which is a major food and energy supplier. Energy prices have dropped significantly since last year’s peaks, although the US and the EU are still fighting stubborn inflation and are tightening monetary policy in response.
The Russia-Africa Summit is currently taking place in St. Peterburg, with delegations from 49 African countries attending to discuss the continent’s economic cooperation with Russia.
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