(NewsNation) — Russian armies continue to overrun parts of Ukraine as planting and harvesting season draws near.
Ukraine and Russia are two of the biggest exporters of wheat — the basic ingredients of day-to-day products including bread and pasta. President Joe Biden says that $1 billion in humanitarian aid will go into effect immediately that will help alleviate some of the pinch and help provide assistance with shelter, clean water and medical supplies.
A shortage of wheat could compound world hunger, with the potential of pushing the world’s poorest countries into famine while driving up prices in the U.S.
“Bad news is they’re the breadbasket of the world — Ukraine and Russia — but we, the United States are going to do our part, the third-largest producer of wheat in the world,” Biden said Thursday. “And our Canadian friends are going to do the same thing. We’re going to try very hard.”
A huge portion of the world’s wheat, corn and barley imports come from the two countries locked war. Portions of the worlds’ fertilizers also remain stuck in Russia and Belarus.
These rising prices come at a time when commodities such as food, oil and gas already are becoming more expensive for American consumers as a result of rising inflation.
Since the invasion began in late February:
- Wheat prices are up 21%
- Barley prices are up 33%
- Some fertilizers are up by 40%
Biden on Friday struck a deal with the European Union to cut the continent’s reliance on Russian energy.
Moscow provides 40% of Europe’s natural gas, but the U.S. has offered to give the EU 15 billion cubic meters of liquified natural gas. Last year Russia exported roughly 10 times that much to Europe.
