Russian-Ukrainian Crisis: Morocco’s Economic Consequences
The Rusian-Ukrainian crisis will undoubtedly affect some of the world’s economies in a negative way. Oil, gas, and wheat prices skyrocketed and there is a concern amid an ongoing economic global crisis. The conflict will probably result in some serious consequences to a number of the MENA region countries’ economies according to the World Bank. Prices of cereals soared which lead to ringing bells.
Like many other nations, Morocco has economic relations with Ukraine and Russia. Last year, the Kingdom imported many materials from Ukraine at a cost of 2.7 billion dirhams, and in exports, it recorded about 677 million dirhams in profits. On the other hand, Morocco imported commodities from Russia for almost 13 billion dirhams and earned a profit of 654 million dirhams in exports. 11% of Morocco’s soft wheat needs are supplied from Ukraine, and 25% from Russia. But according to La Vie Éco, trade between the Kingdom and the two countries is set to decrease this year.
The Policy Center for the New South (PCNS) report ‘The Economic Implications of the War in Ukraine for Africa and Morocco’ says that since Ukraine and Russia are among Morocco’s main wheat suppliers, the North African country is the one that is most likely to experience a significant negative shock from the crisis. Nevertheless, about 20% of Morocco’s wheat imports are from the Black Sea and the other 80% is imported from other countries, including France.
All of this will probably affect the international trade of Morocco, yet it will not influence the local market supply.
Prime Minister of Morocco, Aziz Akhannouch, said that the government is working on keeping prices stable as well as subsidizing a number of basic goods and services.
Mustapha Baitas, Morocco’s Government Spokesperson, assured citizens about the soft wheat imported by Morocco from Ukraine and Russia and said that “the impacts will be restricted to prices, whereas the supply will not be affected.” He stressed that “Moroccan soft wheat imports from Ukraine were set at 8.7 million pounds, 6.5 million of which Morocco has already received, which means that the difference in supply is rather low, and can easily be purchased from other exporters.”
The efforts that the government did during the last January concerning importing wheat, reinforced the national stock of this material whereas officials from the Ministry of Agriculture have stated that “Morocco has an official stock of five months, in addition to a reserve available from farmers.”
In regards to imports from Russia, Baitas said that “Morocco did not depend on Russian wheat imports this year, due to a weak agricultural season in the European country.”