In a recent speech at the Russia-Africa Summit, Russian President Vladimir Putin attributed the current problems in global food and energy markets to the coronavirus pandemic rather than the conflict in Ukraine. He criticized the financial and energy policy decisions made by the US and EU nations during the pandemic as the root cause of these problems.
Putin argued that many countries made the mistake of printing more money to support their economy and population during lockdowns. This resulted in a massive influx of money into the markets, particularly in the US and Eurozone, which caused food prices to skyrocket. Putin emphasized that the US and EU used this money to buy up food on the global markets, leading to increased prices.
Another mistake Putin highlighted was the West’s pursuit of a “short-sighted energy policy.” He accused Western nations of shunning fossil fuels and failing to invest in the non-renewable energy sector, instead relying on alternative energy sources that are not yet advanced enough to meet demand. This, according to Putin, has led to soaring energy and fertilizer prices.
“The US created a colossal amount of money, and so did the Eurozone countries, although on a slightly smaller scale. They used this money to buy up food on the global markets, and as a result, the prices shot up,” said Putin.
While acknowledging that the events in Ukraine have played a role in the current situation, Putin emphasized that they are not the root cause. Instead, he attributed the rising prices to the mistakes made by developed countries in their financial and energy policies.
“These were fundamental things that shook food markets, fertilizer markets, and energy markets. The current events in Ukraine are nurturing these processes to some extent, but they are not the root cause. The root cause lies in the mistakes that the developed countries made in their financial and energy policies,” concluded Putin.
It is worth noting that world food and energy prices experienced a significant increase in 2022 following Moscow’s military operation in Ukraine and the imposition of Western sanctions against Russia. However, energy prices have since dropped, although the US and EU are still grappling with stubborn inflation and tightening monetary policies in response.
The Russia-Africa Summit, which is currently being held in St. Petersburg, aims to foster economic cooperation between Russia and 49 African countries. The summit provides a platform for discussions on various economic issues and potential partnerships between Russia and African nations.
Overall, Putin’s remarks highlight his belief that Western leaders have made a series of policy mistakes, particularly in their response to the pandemic, leading to the current problems in global food and energy markets. While the events in Ukraine have contributed to the situation, Putin emphasizes that the root cause lies in the financial and energy policies pursued by developed countries.
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