BANKING AND ECONOMY
The World Bank announced $12 billion in funding for projects to address the global food security crisis due to the ongoing Russia-Ukraine war and international economic sanctions on Russia. With this, the total funding was raised to $30 billion from the World Bank.
The funding will finance projects over the next 15 months to boost food and fertilizer production, facilitate greater trade and support vulnerable households and producers.
Previously $18.7 billion in financial assistance was announced for projects to be implemented over the next 15 months in Africa and the Middle East, Eastern Europe, and Central Asia, and South Asia.
Due to the ongoing war and economic sanctions, the exports of food products were banned and shortages. As a result of this, the food price increases have devastating effects on the poorest and most vulnerable countries. The situation disrupted the supply of wheat and other food supplies from both countries (Russia & Ukraine) and pushed up fuel and diesel prices, especially in developing nations. Recently, the Indian government banned the export of wheat.
With the funding, efforts to be taken in countries to increase the supply of energy and fertilizer, help farmers increase plantings and crop yields and remove policies that block exports and imports, divert food to biofuel, or encourage unnecessary storage.