Bulgarian Finance Minister: Grain Prices Might Triple Unless Europe Takes United Actions

Jerusalem, 22 June, 2022 (TPS) -- Unless Europe takes united actions, the price of grain might double and triple in winter, Finance Minister Assen Vassilev said at the opening of Sofia Economic Forum III (formerly known as Plovdiv Economic Forum) here on Tuesday. He specified that at present Russia is not exporting grain, and Ukraine cannot export grain due to its ports being blocked by Russia and land transport having limited capacity.

Most grain quantities have been bought out by China because it has offered the highest price, Vassilev also said. The countries that need grain the most, such as North African states, will get very small quantities or no grain at all. This, in turn, means that a huge migrant wave can be expected from these countries toward Europe.

If Europe does not activate the market mechanisms to support poor countries in obtaining grain, a large-scale increase of food prices in Europe can be expected, the Finance Minister noted. Europe taking united actions means activating Article 15 so that all exports outside of Europe be controlled and go to those most in need of grain, rather than to those offering the highest price. This is the way to avoid the humanitarian crisis and catastrophe, Vassilev argued.

Other problems will emerge in the near future, he went on to say. These will be related to a shortage in building materials as well as rare metals, which is why joint actions should be taken.

In the mid-term, connectivity must be improved between Greece, Bulgaria, Romania, and Poland so as to build the necessary gas pipelines, roads, and railway lines to transport goods. Vassilev forecast that the Black Sea will be unusable as a transport route at least in the near future as that would be highly risky. He called for speedier decision-making at the EU level because action should be taken more quickly.