the war in ukraine is taking a toll world wide. there's growing concerned the conflict could initiate a global food crisis with russia and ukraine. both major export is key projects between them. they supply the world with 30 percent of its wheat, at least a 5th of its corn and a massive 80 percent of its sunflower oil. but probably the most important of those is wheat. the price of which has hit record high as a result of the crisis. it's heading for double what it was just a year ago. developing nations are set to suffer the most as they search for new sources of the staple. any farmer who still has grain in storage is now turning it into cash. prices have never been higher. agricultural trader, all of pete us exports suite via ports in northern germany. from here it had to north africa. the company has been inundated with enquiries since it became clear,

there would be no weak deliveries from ukraine, psychedelic righty. actor, depending on daily fluctuations, wheat currently costs somewhere around $450.00 euros per ton than the goods have to be transported to north africa around saudi arabia. they are freight rates of $40.00 to $50.00 euros per ton. so it's close to 500 years per tonne and the receiving countries thought in functionally that twice as much as a year ago. ukraine has long been one of the world's largest. we'd exporters on the world market. it has competed with russia. now both countries exports have come to a standstill. there are shortages of labor fuel in seats. the effects are being felt around the world. army are yet shown, no dimness, lexus, according to the last world should report, we already have an increase in under nourishment that's moving in the direction of 1000000000 people with the raw material price explosion that we're experiencing at

present. we fear that they'll be even more people facing undernourished men. i don't soon armored at winter near on. stocks in this large mill processes around 1000 tons of wheat into flower every day. mill, on a young chorus mire says the shortage of ukrainian wheat is already being felt. he advocates reducing meat production to stabilize grain prices and to secure food for poor countries. and those are the thought of fear, very heavy. as a theme germany, we use about half of the produced wheat to feed picks and other life stock. but i can produce only one kilogram of meat from 7 kilograms of grain. that raises the question of whether it still makes sense to put so much wheat into meet production at so long as of a long it will be a long time before the next grain harvests in europe. and before the warehouses fell up again. i've been discussing the serious situation on the world's wheat

markets with a taper from the united nations world food program. i asked her to explain the knock on effects. the record prices were already having this of the crisis compounding on existing global crises. and we've already seen and started to feel the impact of this conflict and on the weak market, the prices have gone up to 40 to 50 percent in the last few days. i think countries that dependent on the inputs are starting to scramble to find different ways to cover that needs. some of these countries are extremely vulnerable. yemen inputs that are 22 percent of the wheat from ukraine's lebanon. around half the input come in is coming from ukraine, libya, egypt, anesha. so i think we will see a big impact on the economies of these countries. and what are that alternatives if

they can't get hold of, you know, wheat from you, which makes up as you say, a large proportion of the way that they impose, where can they get that from? and can they get it as cheaply as they're getting it from russia and ukraine? the here there is that you surplus in the globe and we supply. but the problem is that it is far away. it's an australia candidate us. so that are different ways of getting we into these countries. the problem is that that will take longer and more lead time, and it will definitely cost more because the transportation costs are being impacted by also the increase in fuel prices. so it is possible to make up for what, whatever was low from the black sea basin, but it will be at the higher cost and a longer lead time. it is not just wait, is it so russia,

ukraine are so big exporters of other products like corn and sunflower oil, key foods. is this going to turn into a crisis this beyond just a shortage of wheat? absolutely, or russia is a mean exported offered delight. this, which are very important for the global production of agricultural products. there are also other than we, we have sunflower oil. this is the bread basket of europe. and in some cases, in many countries in the middle east and north africa and lots of green come, so any serious disruption of production and experts from this region when food that is, can eat prices and end it all the food security. for millions of people who are already under stress, you're actually speaking to us from poland on to where you are with the you and world food program. so it borders, ukraine. what's the situation like where you are?

one of the was the program at the moment is working to scale up our operation inside your claim. so the teams in the neighboring countries in poland, hungary lakia more gold and romania are waiting to set up, stealing an operation to feed up to 3000000 people inside ukraine. the priority here is to supply cities with in ukraine, with bulk food, with a bread, food rations, vouchers, cash, and with consignment, the food arriving on baby basis inside ukraine would increase again this time to preposition, food in areas we're fighting is expected to flip in the areas where the food is available and retail is waiting properly, w p will focus on the provision of cash and vouchers so that people who are impacted by the conflict, whether the population on the move or people who have been stranded in these places

and their livelihoods have been impacted can provide the food needs navigation for food within ukraine on and beyond the clear grave of this, this war. thank you very much via a telephone from the us world food program. meanwhile, russians having to adjust to life without major west and brands, the list of famous us and european companies, suspending operations that over the invasion of ukraine is growing by the day one of the biggest and perhaps the most symbolic is mcdonalds. in january $990.00, shortly after the fall of the berlin wall, mcdonald's opened its 1st restaurant in moscow's pushkin's square, moscow bites cued for hours to taste their very 1st burger. the cold war was coming to an end. one big mack at a time 32 years later after russia's invasion of ukraine, the company is closing 850 restaurants in the country. and russians are struggling

to understand why anybody knows me. attitude of western companies is unpleasant to say the least. it's incomprehensible why they're doing this to us life and it's unclear what they want to achieve. were pretty brave people who quite said that we can't be intimidated by this with them when we need a little who would use of goodness to put them nothing to do to rush and censorship . many here don't seem to know that western companies are closing shop because of the country's war and ukraine. after all, even calling it a war is an offense punishable with 15 years in prison. put in, wants his people to talk of a special military operation and tries to make the west look like the aggressor, a line that some russians gladly follow. mcdonald struck the closure as temporary, but it's hard to say if and when russian restaurants would reopen the western brand

that symbolized the opening of the u. s. s. r to the west has quickly become the poster child of a new era of tension. i speak to timothy ash, he's a senior sovereign strategist for emerging markets, sap blue bay asset management. thanks for joining us on d. w. business. we are seeing this exodus of western businesses all way from russia, but also the impact will that actually have for the russian economy. well, if you put the sanctions in total together, pretty devastating. i mean, most people expect to some sanctions, i don't think expected what, what, what we have if you think of iran and sanctions of 10 out of 10, we were maybe 2 to 3 out of 10 in terms of the crimea done by sanctions. people may be expected 6 perfectly kind of 8 to 9 for financial markets are our closing completely. swift cb, our assumptions the big bank sanctioned. it's very difficult to transact now with russia. and so, transacting trade actually and, and we've seen that, you know,

it's difficult to companies. i'm not sure about sanctions getting pulled into secondary sanctions. but i think more than that, i think this shows the importance of e. s. g, environmental, social and governance. companies don't want to be associated with the regime like putin, that he's carrying out these indiscriminate attacks on civilians. so they're worried about that brands and about perhaps potential boycotts of that bronze in bigger markets than in russia. but investor is going to be devastating. their dropping ged pay massive drop of living standards. russians are going to feel a lot poorer because of this. a indeed as a ratings agency pitch cut rushes credit rating to junk. just earlier on this week i is defaulting on. is that something that is almost certainly going to happen now? seems very likely unless pollutant poles pulls out to view craner. i think what's interesting about this christ russia is, you know, it reminds me of 98, the big financial crashing machine, 98,

but actually it's worse. it's worse because russians didn't expect this was going to happen. they believe the lives of the kremlin, they're all invested. so they're all massively losing their money in rushes, financial markets from banks a. it's also default restructuring was part of the solution. and they also had the systems from the west and i'm a program. so it was kind of like at the end of the tunnel for russia, and for those companies, those international companies that you're thinking about, where is the light? when is this going to rain? when is there going to be an improvement in the relationship with the west? a sanction lifted soon doesn't seem so. so, you know, people thinking about whether to invest in much of the after, think that, you know, the russian economy is going to be in a dire position for a very long time. and i really is the thing is because not only do we not know how the russian economy is going to go, because we don't know how long what's happening in ukraine is going to last. timothy ash from blue bay management asset man, asset management. even thank you. so much for joining us here on the to be business location. and that's all we got time for for now. but if you do want more

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ah ah, this is news line from berlin. humanitarian catastrophe. cave accuses russia of bombing children's hospitals in ukraine. authority say several people are dead, including at least one child. prisons, the landscape calls rushes attacks on civilians, a genocide, western allies war and the assault could turn even more brutal as a russian forces. try to regain momentum and still no path to peace talks

between ukraine and russia. make no progress towards.