Current tensions between Russia and Ukraine are expected to have a negative impact on global grain markets, as both countries are among the world’s largest grain producers. However, it’s currently difficult to assess the scale of potential damage as food prices depend on a range of factors, according to Monika Tothova, an economist with the Food and Agriculture Organization of the United Nations (FAO).
“Taking into account the input of both nations into the world market of grain, the tensions between them inevitably influence the situation,” the economist said in an interview with TASS.
According to Tothova, the markets are also deeply dependent on such factors as volatility, climate conditions, costs of production materials, and many others.
“Thus, it is difficult to say exactly what impact we should expect, but certainly the current situation contributes to creating uncertainty in the markets,” Tothova said.