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World Bank President explains to CNN the impact of the Ukraine crisis on energy production

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(CNN) — World Bank President David Malpass told CNN that global policies on energy production will be “one of the biggest variables” to weather the impact on price shocks from the war in Ukraine.

“Markets are looking forward, so the big investments that are needed have to be pumped with the idea that there will be a benefit to them after 10 years, and this is especially true of energy,” Malpass added, in an interview with CNN’s Eleni Geokos.

The World Bank released its first comprehensive analysis of the impact of the war in Ukraine on commodity markets, which it predicted could cause the “biggest shock” since the 1970s, and also found that energy prices are set to rise more than 50%, especially the price of natural gas in Europe.

“Obviously no one can predict the far future, but it depends a lot on what other countries will do to make up for the losses in Russia and Ukraine, and that’s not decided yet,” Malpass said.

The World Bank report expected that the price of wheat would rise by 42.7% and reach new record levels.

The World Bank chief said that his most concern is the “surprise” of high prices and shortages of wheat, food and fertilizer, and added: “The lack of energy in countries with cold climates means that people suffer from hypothermia, but when their food decreases, it means that children are not eating.” This is a concern in many parts of the developing world.”

He said the World Bank is working to get food out of Ukraine through transportation systems, citing the border with Poland as an important rail transit area.

He stated that “there are logistical difficulties and major challenges, because the volume of food available in Ukraine for export far exceeds the capacity of the land routes. They need to reopen the sea routes through the Black Sea, but it has been badly damaged by the war.”

On China, the head of the World Bank said that the closure implemented by the Chinese authorities to combat the Corona virus is harming the supply of various commodities around the world.

He stated: “Other countries can compensate for these, but there must be a favorable environment for new production and investment. We do this in developing countries, and we encourage it in advanced economies.”

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