The effects of the Russia-Ukraine war are being felt in different ways. According to the latest information, the war has increased the cost of living of the Russian people. In the last one week, the price of sugar has risen by more than 14 per cent among some essential commodities. News from the BBC
Inflation has also risen since the start of the war as the Russian ruble has depreciated. The ruble has already depreciated by 22 percent.
Russia's finance ministry said on Wednesday that the country's annual inflation had risen to 14.5 percent over the weekend, the highest since 2015.
Sugar is commonly used in food preservation, beverage making and many other purposes. According to government agencies, sugar prices have risen the most this week. According to the Federal State Statistics Service, in some parts of the country, the price of sugar has risen by 36.1% and on average by 14%. Then there is the price of onion. Onion prices have risen by an average of 13.6 per cent in the last one week and in certain areas by 40.4 per cent. On the other hand, the prices of nappies, black tea and toilet paper have increased by 4.4, 4 and 3 percent respectively.
Stephen Ines, a partner manager at SPI Asset Management, told the BBC that commodity prices were rising as the ruble depreciated. But the biggest culprit is import inflation. Russia has to import more because of the devaluation of the ruble.Several Western businesses have withdrawn from Russia. Nestle has recently withdrawn its main brands KitKat and Nesquick from Russia.
The video, posted on social media, shows vendors in Moscow supermarkets crying out for sugar and buckwheat. Russia is self-sufficient in sugar and buckwheat, Russian Deputy Prime Minister Victoria Abramchenko has said. There is enough stock for everyone.
On Wednesday, Russian President Vladimir Putin announced the sale of natural gas to enemy states through the ruble. The European Union is largely dependent on Russian gas. However, many countries have already agreed to trade in euros in light of the existing agreement, and there is uncertainty over whether Russia will change its decision.
In 2016, then-US President Donald Trump imposed tariffs on European Union and Japanese goods on the pretext of national security. This caused a lot of bitterness between the two countries. This time, the United States has agreed to reduce tariffs on steel and aluminum, eliminating the animosity in relations. In return, the UK will suspend additional tariffs on US goods. Under the agreement, the United States will withdraw 25 percent of its tariffs on steel with the introduction of quotas. As a result, the United Kingdom will be able to import a certain amount of metal products free of charge. This decision will be effective from June 1. Businesses have welcomed it.
Anne Marie Trevelan, the UK's international trade secretary, said the agreement had "removed a lot of frustration and frustration". This is good news for the steel and aluminum sectors. It will employ 60,000 people in the UK. This means that UK producers are again able to trade in the US market duty free. The United Kingdom will go a long way in improving trade relations with the United States.
U.S. government officials have also welcomed the suspension of retaliatory tariffs in the United Kingdom. They say the tariffs have caused 500 million in annual trade losses.Chad Bonn, a senior fellow economist at the Peterson Institute for International Economics, said the Biden administration was pursuing its own goals, with the goal of increasing trade. But there are no signs that the US administration wants to improve relations with other countries any time soon.
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