Economy

The central and often unsuspected economic role of Ukraine – rts.ch

The central and often unsuspected economic role of Ukraine – rts.ch
Written by on100dayloans

Since February 24 and the start of the Russian invasion, Ukraine has operated its production as a war economy. But in some areas, this country is a global economic heavyweight. Especially in agricultural production and in metals. The war being played out there therefore affects the entire world.

Ukraine is above all a huge agricultural country. It is the first exporter of sunflower oil, with 42% of world exports, and the second exporter of rapeseed behind Canada. But Ukraine is the sixth largest exporter of cereals: the country alone accounts for 8% of world wheat exports and 16% of those of maize.

The Russian invasion therefore has massive consequences for the food supply. And especially in Egypt. This country of 102 million inhabitants is the world’s main importer of wheat and is 80% dependent on Russia and Ukraine. Since the beginning of the conflict, the price of bread there has increased by nearly 50%. And despite wheat reserves and the intervention of the Egyptian government to fix the price of unsubsidized bread, some denounce the behavior of flour sellers, who take advantage of the situation to cause a shortage on the market.

>> The report in Cairo by Olivia Comte:

Egypt is threatened with a shortage of wheat.  World's leading importer: 80% comes from Russia and Ukraine. [RTS]

Egypt is threatened with a shortage of wheat. World’s leading importer: 80% comes from Russia and Ukraine. / 7:30 p.m. / 2 mins. / yesterday at 7:30 p.m.

Ores and electronic components

In addition, the Ukrainian basements also abound in significant reserves of metals. With 3% of world exports in 2020, the country is the fifth largest exporter of iron ore, behind the Australian juggernaut (which alone accounts for more than 55% of world supply), Brazil, South Africa and Canada.

Ukraine also exports over 2.5% of the world’s iron and steel alone. And the country is a major producer of metals or metalloids used in industry, such as titanium and lithium, two of the most precious minerals today, or gallium and germanium, used in optical components and semiconductors. , a small percentage globally, but not negligible compared to the size of the country’s economy.

The country also exports 50 to 70% of the world’s volumes of purified neon. However, if this market only weighs a few hundred million euros, this gas is essential for the manufacture of semiconductors present in many electronic devices, such as smartphones, cars or industrial robots. In southern Ukraine, the city of Odessa is particularly considered the capital of this crucial element.

Export of IT services

Finally, at European level, Ukraine not only exports raw materials, but also services and brains. Thanks to the quality of its developers, this country is usually the leading European exporter of IT services, and therefore an important subcontractor for many European companies. Many banks, service companies and even insurance companies are snapping up Ukrainian digital know-how.

In Switzerland, there are dozens, even hundreds. For example, the online bank Swissquote employs around 70 IT specialists in Ukraine. Just like the Lausanne-based cryptocurrency investment platform Swissborg.

In total, 11,000 Ukrainian companies offer their services internationally. But the war is shaking up this IT outsourcing market, even if the companies contacted by the RTS declared that they had been able to face this conflict without too much damage to their activities.

>> Details from 7:30 p.m. on the impact in Switzerland:

The Russian invasion of Ukraine has an impact on the external employment of Ukrainian IT specialists in Switzerland. [RTS]

The Russian invasion of Ukraine has an impact on the external employment of Ukrainian IT specialists in Switzerland. / 7:30 p.m. / 2 mins. / yesterday at 7:30 p.m.

TV Didactic: Tristan Dessert
Web text: jop

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