International Monetary Fund (IMF) published a report stating that an escalation of the conflict in Ukraine could lead to a new energy crisis in Europe and increase food security risks in low-income countries.
“The escalation of Russian military operations in Ukraine <…> It could lead to a new energy crisis in Europe,” the report says.
The report also says that while the threat of a gas crisis in Europe in the winter of 2022-2023 is offset by liquefied natural gas (LNG) imports, falling demand and a mild winter, there are still risks of significant price hikes in Europe. future. At the same time, the increase in food prices due to the non-extension of the “grain deal” will increase the burden on importers.
“Social tensions may increase due to rising food and fuel prices,” the fund warned.
Formerly Project Syndicate WroteEurope will remain in a state of energy crisis until at least 2024.