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World Bank’s Malpass warns against hoarding food or gasoline

15 March 2022 09:10 (UTC +04:00)

World Bank President David Malpass on Monday warned individuals and businesses against hoarding food and gasoline despite soaring prices caused by Russia’s invasion of Ukraine. and the massive sanctions imposed on Moscow, APA reports citing Washington Post.

Malpass told a virtual event hosted by the Washington Post newspaper that sanctions would have a bigger impact on global economic output than the war itself. But he said that based on current assessments, he did not expect the crisis to end the global recovery and reduce global GDP.

He said he expected a vigorous response from growers around the world to increase supplies as needed, and saw no need for people to have extra stocks in their kitchens or restaurants.

He said he foresees large increases in the supply of energy outside of Russia and of food outside of Russia and Ukraine, which will lessen the impact of price spikes caused by war and will help sustain the recovery.

He said energy supplies could grow faster than food supplies, given that agricultural adjustments typically take about a year.

“The right thing to do in these current circumstances is not to go buy extra flour or gasoline, it is to recognize that the world is a dynamic global economy and that it will react. will have enough for everyone.

Malpass also said Russia had tough decisions to make on servicing its debt amid crushing Western sanctions that have tied up its foreign currency holdings. Russia’s Finance Ministry said on Monday it was ready to make two bond payments in rubles instead of dollars because of the sanctions.

The consequences of the sanctions “are far-reaching, they are serious for Russia as a nation and they extend to the Russian people as a direct result of the ruble’s devaluation,” Malpass said.

“For many Russians, the devaluation they are going through now brings back memories of the communist system,” he said, referring to a time when basic necessities and consumer goods were scarce in the economy.