Disruptions Of Russia, Ukraine Exports Influence US Food, Fuel Prices - Biden's Report

WASHINGTON (UrduPoint News / Sputnik - 21st March, 2023) Disruptions of exports from Russia and Ukraine have impacts on food, oil prices and overall inflation in the United States, US President Joe Biden's 2023 economic report said on Monday.

"Although Russia and Ukraine are relatively small trading partners for the United States� representing only 0.5 percent of U.S. exports and 1.1 percent of U.S. imports in 2021�because they are major producers and exporters of key commodities, disruptions of their exports influence the prices U.S. consumers must pay for food and fuel, and also overall inflation," the report said.

The conflict in Ukraine had a significant impact on global commodity markets in 2022 and echoed in US exports, it added.

The report also warned that disruptions in energy and agricultural product supplies from Russia and Ukraine can affect US exports as well.

"The loss of Ukraine's export supply, along with the reluctance of global buyers to engage with Russian exporters on the exports of grains and oil seeds and Russia's own export restrictions on fertilizer and other agricultural products, resulted in contractions along key supply lines for food staples and agricultural inputs like fuel and fertilizer, sending prices soaring in the immediate aftermath of the invasion," the report noted.

The grain deal signed between Russia, Turkey, Ukraine and the United Nations in July 2022 and extended for 120 days in November 2022 was due to automatically renew for another 120 days on March 18 unless either of the signatories object. Russia said on Monday it did not mind extending the deal but only for 60 days, which was confirmed by Kremlin spokesman Dmitry Peskov on Friday.

The Black Sea Grain Initiative, also known as the Initiative on the Safe Transportation of Grain and Foodstuffs from Ukrainian ports, provides for the export of Ukrainian grain, food and fertilizers over the Black Sea from three ports, including Odessa. The package agreement also includes a memorandum of understanding between Russia and the UN to unblock Russian grain and fertilizer exports via the Black Sea.