Korn warns of rising food, fuel prices if Russia-Ukraine conflict expands
The Thai economy will suffer if the Russia-Ukraine armed conflict lingers or expands, former finance minister Korn Chatikavanij warned on Friday.
He noted that both countries – not just major trading partners like the US and European Union – are significant to the Thai economy.
“A conflict that expands into a war will have an impact on us one way or another. What’s clear now is that the price of oil is rising, while stocks and cryptocurrencies are falling. If this [armed conflict] extends or expands, the Thai economy will definitely be affected,” Korn said in a Facebook post.
Korn, who also leads the Kla Party, said Ukraine is more important to the global economy than thought earlier. He also pointed out that Russia sends its gas to Europe through Ukraine and disruption can have an impact on global fuel prices.
He also said Ukraine is a major producer of food, especially wheat, and cattle.
“It is said that Ukraine has the potential to feed up to 600 million people. If this conflict continues, food prices will surge, which will result in a higher cost of living,” Korn wrote.