Russia-Ukraine Crisis
Ukraine-Russia situation can hit oil & gas, essential commodities: Ex-RBI governor Raghuram Rajan
Former RBI governor Raghuram Rajan in an exclusive interview to CNBC-TV18 said Russia's invasion of Ukraine can create difficulties for countries dependent on supply of gas and commodities from the region.
He underscored that the global economic recovery would be difficult as the markets are already under stress and the military action will further complicate the situation as natural gas reserves are limited while the demand would be high.
“Recovery is at risk. It comes from the price of energy, from natural gas in Europe. More generally, oil from across the world. The concern is more about natural gas which is limited in supply and harder to get to the right places,” he said.
He noted that the oil production is low at the moment and situation can ease if Iran is brought in the picture.
Rajan opined that the military action on Ukraine can affect not only oil and gas but also essential commodities like wheat.
“Grain prices can also go up because Ukraine and Russia contribute a great amount of wheat exports to the world.”
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