“Control oil and you control nation; Control food and you control people” – Henry Kissinger.
According to Robobank, Russia, which is sanctioned by the West, produces large amounts of potash, ammonia, and urea and exports around 20% of the world’s nitrogen fertilizers and 40% of the world’s exported potassium when combined with its sanctioned ally Belarus. These are the three primary ingredients required to produce chemical fertilizer. They contributed to the 1960s Green Revolution, which tripled global grain production and Food harvesting, transportation, and processing costs will rise as fertilizer supplies are depleted and oil prices rise. Many African countries, which rely heavily on foreign imports, are scrambling to find solutions as a result of the crisis. Palm oil, the world’s most consumed edible oil, has rise and fallen to its lowest level this year as top producer Indonesia ramps up exports, while wheat, corn, and soybeans have all fallen from highs.
The majority of Asia’s emerging and developing economies are net importers of oil, gas, and metals, putting them at risk from rising global commodity prices. Higher commodity prices exacerbate the problems caused by high inflation, debt, tightening global financial conditions and underlying fragility and conflict in some countries.
Following Russia’s invasion of Ukraine, a potent mix of pressures and incentives was created for countries and investors to speed up the energy sector’s transition away from fossil fuel energy and toward renewable energy. However, as we know, current market and policy signals are not incentivising significant capital reallocation to low-carbon power, and technology development is also in its early stages. In the absence of such a shift, there is an increasing risk that investment in fuel supply will fall short of what is required to meet rising demand. By failing to plan for a post-fossil-fuel future, the world has walked straight into an energy crisis
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