International Trade Council expresses its support for Ukraine amidst the catastrophic impact of the ongoing war on the country's economy. The World Bank recently warned that the war in Ukraine would cut global economic growth, and the president of the World Bank, David Malpass, has called it "a catastrophe" for the world.
The International Trade Council highlights the devastating economic and humanitarian effects of the conflict on Ukraine and the world. The disruption caused by the conflict will lead to huge price rises for goods ranging from natural gas to wheat and cotton, which is already having an impact on households across the globe. The council acknowledges that the poorest households are particularly vulnerable to this price spike since they spend a larger share of income on food and energy.
According to Alexander Rodnyansky, an economic adviser to President Zelensky, the war has already caused massive destruction of roads and bridges and infrastructure, which will have to be rebuilt over the years when the war is over. The workforce has shrunk dramatically, and production is collapsing, making it difficult to keep the wartime economy going. Furthermore, the disruption to vital food and energy supplies is also a severe concern.
The International Trade Council recognizes that the economic impact of the war extends beyond Ukraine's borders, and the rises in global energy prices, in particular, hit the poor the most, as does inflation. Furthermore, the war has resulted in the reduction of supplies of crops such as sunflower oil, wheat, and cotton, causing significant price increases globally. Mr. Malpass warned that the same is true of Russian energy supplies, and it is particularly damaging to western Europe, where governments have neglected other aspects of how to have enough electricity.
To prevent a lasting economic setback and to help fund the budget of Ukraine, the International Trade Council supports the World Bank's efforts in putting together a $350m aid package for Ukraine, which is expected to be approved within the next few days. This aid package will help pay for things such as government salaries, social welfare, and emergency supplies, as tax revenues have collapsed because of the war.
"The International Trade Council is committed to supporting Ukraine during this difficult time," said a spokesperson for the council. "We urge the international community to come together to support Ukraine in its efforts to overcome the impact of this conflict and rebuild its economy."
The International Trade Council supports Ukraine's desire to integrate with the European Union and be part of the European family, and have a democratic, strong, economically free country that's flourishing. The council recognizes that Ukraine has made significant strides towards digitization, making it easier to do business in the country, and hopes that this progress will not be undone by the ongoing war.