Bonn (Germany): Ahead of the G7 finance ministers’ meetings, the US Treasury, several global development banks and other groups unveiled a multi-billion dollar plan meant to address a worldwide food security crisis exacerbated by Russia’s war in Ukraine.
Treasury announced Wednesday that several global development banks are “working swiftly to bring to bear their financing, policy engagement, technical assistance” to prevent starvation prompted by the war, rising food costs and climate damage to crops.
Tens of billions will be spent on supporting farmers, addressing the fertilizer supply crisis, and developing land for food production, among other issues.
The Asian Development Bank will contribute funds to feeding Afghanistan and Sri Lanka and the African Development bank will use $1.5 billion to assist 20 million African farmers, according to Treasury.
The European Bank for Reconstruction and Development, the Inter-American Development Bank, the International Fund for Agricultural Development and the World Bank will also contribute tens of billions in the coming months and years to support food producers and address supply shortage issues.
The plan stems from a meeting that Yellen convened in April at the International Monetary Fund and World Bank spring meetings, where she called on powerful nations to look for specific ways to combat a looming crisis over food insecurity around the globe that Russia’s war in Ukraine has made even worse.
Russia and Ukraine produce a third of the world’s wheat supply, and the loss of commodities due to the war has resulted in soaring food prices and uncertainty about the future of food security globally, especially in impoverished countries.
Yellen arrived in Germany for a meeting of finance ministers for the Group of Seven leading economies in Bonn, Germany later this week.
She met Tuesday with EU Commission President Ursula von der Leyen in Brussels. Yellen said they discussed “critical issues related to energy security, Ukraine’s economic needs, and continued coordination to impose sanctions on Russia.”
While European nations plan to phase out of Russian oil and gas, the US is pressing EU leaders to consider possible oil tariffs and other methods of preventing Russia from benefiting from increased energy prices.
Yellen’s visit to Europe, which included time in Poland, is meant to address the effects of the war in Ukraine, an international tax plan she negotiated with more than 130 countries last year and an energy crisis contributing to high inflation worldwide.
Along with being tasked to impose financial sanctions on Russia, distribute pandemic programmes still in effect and other duties, now Yellen will be responsible for ensuring the world’s most vulnerable populations don’t starve as the war in Ukraine rages on and threatens wheat and grain supplies world wide.
