Egypt's economy loses USD 7 billion due to Russia-Ukraine war

Before the beginning of Moscow's operation in Ukraine, Egypt had been importing 42 per cent of its grains from Russia and Ukraine, Madbouly said, adding that 31 per cent of all tourists visiting the country were also from these two countries.
File photo of Egyptian Prime Minister Moustafa Madbouly(REUTERS)
File photo of Egyptian Prime Minister Moustafa Madbouly(REUTERS)
Published on May 15, 2022 11:41 PM IST
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ANI | , Cairo

Egyptian Prime Minister Mostafa Madbouly said on Sunday that the Egyptian economy had suffered 130 billion Egyptian pounds (USD 7 billion) in direct losses due to the ongoing Russian military operation in Ukraine.

"The consequences of that conflict caused enormous financial spending for us, we as Egyptians should know. Today we counted that the direct impact (of the hostilities in Ukraine), which is already felt and will be felt as a result of the increase in strategic goods prices... is 130 billion Egyptian pounds (on a year-to-year basis)," Madbouly told a press conference on measures to mitigate the consequences of the situation in Ukraine, adding that indirect losses of Egypt could reach some 335 billion Egyptian pounds.

Before the beginning of Moscow's operation in Ukraine, Egypt had been importing 42 per cent of its grains from Russia and Ukraine, Madbouly said, adding that 31 per cent of all tourists visiting the country were also from these two countries. However, the minister noted, Cairo swiftly began to look for other suppliers of grain and is trying to attract visitors from other countries.

Madbouly said that the government had adopted some measures to reduce the negative impact on the economy, including strengthening the private sector, localization of industry, and giving a boost to the Egyptian stock exchange, adding that "Egypt would have neither overcome the crisis caused by the coronavirus nor withstand this crisis if it was not for the program of economic reforms and the unprecedented pace of development."

Egypt started experiencing an increase in food prices in March after the prices had increased on the world market due to the crisis in Ukraine. In this regard, the Egyptian government issued a decree regulating the prices of subsidized and unsubsidized bread. The government also enforced a three-month ban on the export of all kinds of seed and vegetable oils, corn, flour, wheat, beans, and other products.

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