HORACIA NAIDOO-MCCARTHY: The price of Putin’s invasion

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Russia's invasion has disrupted the energy market and extended global reliance on fossil fuels, with implications for the ESG-conscious investor.

Russia’s invasion has disrupted the energy market and extended global reliance on fossil fuels, with implications for the ESG-conscious investorOil markets were tight before Russia’s invasion of Ukraine: major producers had fallen behind their production quotas, there was limited spare capacity within Opec, and the sector has seen chronic underinvestment over the past few years.

There is a disconnect between how the world is powered and how we wish to power it in the future; despite efforts to transition to clean energy, most economies remain heavily reliant on fossil fuels Another concerning consequence of the Russia-Ukraine crisis is the impact on food inflation and global food supply. Ukraine is the largest exporter of sunflower seeds and the second-largest supplier of cereals . Russia is the world’s largest exporter of wheat and together with Ukraine is responsible for almost a third of global wheat supplies.

 

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