apart, we choose to look some common ground ah, give amidst russian allied forces have almost completely taken the city of several then. yet in the guns for public us suggests adopting more organic farming methods in an attempt to compensate for its lack of fertilizers upon that previously so yields insur lanka dropped by a 3rd. we hear from some frustrated pharmacy that's coming from somebody that has a lot of clue about harming, decides, having to use worry about the weather has been using the f one off. we have to worry about getting a fertilizer and inflation breaks. old time records in the euro zone, with some politicians question, the effects of anti russian sanctions. as a blow box. it's the you economy with,

from moscow to the world. this is all the international. i'm peter scott and wherever you joining us from, welcome to the program. we start off with the latest on the war in ukraine, where rush has reportedly stroke and industrial plants in the heart of legion. now these on verified pitches appear to show the aftermath of the russian forces attack on the facility, which was in the village of b, as nude of co locals do claim that windows and doors in nearby houses were blown out because of the explosion. there's been no official comment so far from moscow on the incident. meanwhile, fighting discontinue in the dom buses, luke guns, republic, ukrainian presidential adviser, as admitted accused forces are likely to reclaim the city of cetera. and yet, it's believe to be almost completely under the control of russian and allied forces, while ukrainian soldiers still remain on the territory of the cities as all to plants and the industrial area. the majority of euclidean troops, early withdrew to the neighboring city of lucy chanced. now cities also seeing fist

fighting at the moment as it occupies a strategic position with ukrainian troops using it to strike nearby several done yet. scott is eager to john of census this update from the front lines. right now, the ukranian forces are trying to break free as they are besieged on the territory of the as sort plant in the town of severed the nets. helping them out is another garrison in the town of lucy chance, which is just over there. you can see on the horizon there are plums of smoke. well, we can clearly hear the sounds of war. well battering all around as they are banging all around us. so this is what they're attracted to because the town of lucy chance, which is just over there. it is the last bastion of ukrainian forces. he and the le ganske people's republic, the town of severed the nets, which they have had to which they had left right. now is almost under the complete control of the la guns people's republics army. and while the russian soldiers as

well the only enclave still that is still held by the ukrainians by the ukrainian nationalist, nazis and well, regular soldiers is the territory of the assault plant. but while the, the living sector, all the apartment blocks are under the control of the russian. and while the allied forces negan the you battle is happening just just down the street just literally, just maybe a few kilometers away from us. the head of the us agency for international development, samantha power says the government is considering natural solutions, lyman your unconcern compost to deal with this sort shortage of fertilizers. we're working with countries to think of unnatural solutions like minor and compost. and this may hasten transitions that would have been in the interest of farmers to make eventually anyway, so never let a crisis go to waste on and done massaro owners of missouri farms in southern

california. think that the u. s. i ministration is out of touch with pharmacy. this whole idea of being able to use manure and everything else is just it's, it's crazy. isn't that, that data that's coming from somebody that has not a clue about farming, right? they don't know, they don't know what they're talking about. they don't know what they're doing. they don't know about the availability. and like dean was saying earlier, like they, they want to cut, they want to use the newer, but yet they want to also get rid of cows. so where is all this maneuver and everything from, from it's, i mean it's, it's craziness. there is none of this makes any sense now or similar upon was previously implemented insur lanka, which cause yields to drop by a 3rd as kinda bulk and explains for months and months the flood waters have been rising. gas prices have been going up and up, americans are now being told that things could be soon, even worse, especially when it comes to food. there's a lot going on right now,

but the idea we're going to be able, it's, you know, quick switch down the cost of gasoline is not likely in their term, nor is it with regard to food prices at the supermarket or of 8 percent over march of last year, why it's more expensive for farmers to fertilize their crops. and the fuel that they use for their machines is also more expensive. both of those situations have a lot to do with anti rush and sanction. some farmers are speaking up and raising the alarm at this point, biden is coming forward and saying he feels their pain and he has a plan. organic farming sounds all nice and he go logical, but it doesn't work out too well. in practice, sri lanka tried it and as a result their crop output decreased by a 3rd t industry alone. last $425000000.00. things got to be so bad. the government actually paid out compensation to those farmers who lost out amid their little experiment. the economic nightmare is still on hunger rioting. in the street,

the sri lanka, government, even back track, someone saying we are not as stubborn government. we are sensitive to the needs of the people, american farmers see what's on the horizon and they are not happy about it. meanwhile, the rate of savings among americans is the lowest. it's been in 14 years. the biden white house continues to roll out plans that match a liberal value system. however, the problems on the ground are very real and getting worse. caleb moffat r t new york while on undone monticello again say they now have to worry about the shortage of fertilizers as well as weather conditions. as everybody knows this cost diesel is crazy high. so that's going to hurt and you have to get more money for your crop. the diesel. yeah, because everyone uses tractors everything. and then after the crop is grown, you gotta take that crap diesel and get it to the supermarket. people are having

problems with fertilize, they're not gonna fertilize well. so they're gonna cut back on their acreage of how much they plan. you're not going to go in there and plan a bunch stuff and then lose it. you can't do that. so you want to make a good crop, so we're gonna do it for as many has much fertilizer. yet besides having to use worry about the weather has like you usually have to worry about. they have to worry about, i can't get enough fertilize and we're going to be able to afford this harvest this crop. once a diesel, everything is crazy, expensive. while it's staying with the u. s. inflation rate, there has risen in all time high of 8 percent. now back in march, the treasury sec to janet yellow, we assured the country that inflation was not a big problem. both sanctions against russia over its worn ukraine have pushed already high energy and food prices up. further. she know, by china though, alleging her assessments all the economy was wrong, is the risk of inflation. i think there's

a small risk and i think it's manageable. i think i was wrong. then as i mentioned, there have been an anticipated large shacks to the economy that i am at the time to fully understand. recent calculations found that record inflation rates will have the average us household spending $5200.00 more on the same baskets of goods compared to last year as an increase of over $400.00 a month. a report in march found that americans in the mountain states are experiencing even higher inflation, averaging over $500.00 in added a household expenses in january alone. the vessel of economics and politics, jack ross, miss told us about an administration isn't little to tackle the problem of rising inflation. i think the democrats are in big trouble because they haven't really addressed the problems. and the people were aware of that. it was pretty obvious what were the forces building towards a more inflation to late last year. we had all these supply problems,

not just in the ports, but you know, within the domestic economy as well. and after that, we had a lot of companies and industries take advantage of the awareness of supply, who didn't have a supply problem, but jacked up their prices. none, none the less. so you've got the fruit companies that are pushing a prices. you've got even baby food problem there, but on top of that you've got something gray real. and now that's the sanctions and the rise in commodity prices and going on speculators and so forth. and now you've got the u. s. companies whose productivity is pretty much collapsing and they're going to start raising their unit labor costs, then jacking up their prices as well. so we ever, oh, series of overlaid of causes that are sort of coming together in a, a perfect storm, which means inflation is going to continue for some months. here it is. this isn't gonna go away. meanwhile, across the pond in europe,

inflation hits all time record highs this week, reaching double digits in several countries. lead in a way is estonia with over 20 percent, among other countries, which refuse to pay for russian gas in roubles. and in the most sanctioned country in the world, russia inflation is actually falling. and some european politicians, they, the sanctions are not working. and since i've had the opposite effect, arthur don quota has the story. sanctions, sanctions, and more sanctions, they just keep on coming. germany's economic minister is completely convinced one day their burden will break russia's back, you will shoot russia, russian economies collapsing, rushes, exports, and impulse of falling dramatically. not the russian economy has been hit hard by the sanctions and a significant part of it is due to germany's actions. and i'm putin is still getting money, but time is not working for russia. it is working against russia. the question is, will the german economy survive long enough to see that day is vice? i know that companies will suffer economic losses. we're trying to cushion the

greatest burdens with loans and subsidies. it was, and yet a cost to remain. german industries have been voicing their growing panic for weeks . now, some industry leaders or even saying things could come to a standstill without russian energy supplies. our industry accounts for around 37 percent of german natural gas consumption. not just the m w, but the entire sector would come to a standstill. as for ordinary germans, all they can do is bite the bullet and pay more for just about everything i am not even saucy. to meet, meet has become especially more expensive. so i eat less meat, we and germany have the highest fuel prices in all of europe. if you thought germany is the only one suffering from its own sanctions, think again, and pretty much every country that's hopped on the anti russia bandwagon. it's the same story. france, for example, promised to collapse the russian economy after moscow began its military operation . and ukraine said, oh, who she give us. it's russia that's going to suffer not europe,

that europe might face a little more inflation and the price of gas might go up a bit. but it's russia that's going to suffer and we're going to witness the collapse of the russian financial systems fast forward 3 months. the european union is facing record breaking inflation, and the finance minister has more to say about his own economy than rushes you shouldn't peak deficient. we are at a peak of inflation group. i said it's all months ago. the hardest part as ahead of us were failing. we are going to see inflation, which will remain high. well, like in germany, the french masses are feeling the heat. missiles will not end of you. we, my expenses have gone up by about 100 year as a month, including water and gas and electricity bills. he's a fellow that we have to work more to provide for ourselves or we need to reduce consumption. and the u. k is going through much of the same a massive package of economic sanctions designed in time to whole the russian economy. we must also commit to the cease the dependence on russian. all of them

gas. he just fell forget it. yeah, he doesn't actually, on the spy, british households off slapped with an extra $53000000.00 pounds on the energy bills every single day. at this point, the blow back from western sanctions has clearly taken a serious toll, but how they accomplish their goal of hurting russia. no, in fact the global rise in energy prices that sanctions contributed to have only made rushes economy stronger. well, now does that seem a load true? unfortunately, these sanctions don't work. possibly at some point they will. and the rubel didn't drop. russia doesn't feel any of these from the financial point of view, and when it does, the war will be over. the price will be paid by european citizens, while vladimir put in will smile satisfaction in russia. seeing such a high profit margin from these new energy prices that it's made up for the loss of its assets, frozen by western banks. even with some countries halting or phasing out energy

purchases, rushes, oil and gas revenue will be about 285000000000 dollars this year. that would exceed the 2021 figure by more than one 5th. throw in other commodities and more than makes up for the $300000000000.00 in foreign reserves frozen as part of the sanctions on top of that, the roubles position on the global financial markets has strengthened to a level that hasn't been seen in years. the writings on the wall more sanctions will come only at the peril of those who deploy them. ortiz murat, gas dear, have had an exclusive interview with the presidential economic advisor. maxime erskin now for discussion with the causes behind the world food and energy crisis, as well as the impacts of sanctions against russia on international trade. let's take a look. first of thank you very much for taking the time as you schedule to speak to us to answer our questions. first of all, of course there's, there's a war of words going on between russia and the west of all sorts of things. but one

of the things that is being focused on now is the, the food situation, or specifically wheat, with the west accusing russia of being guilty of being behind this latest food crisis. because russia lodged the special operation, and therefore it is guilty for, for all the consequences. could you please explain to us how this actually works? so, what we actually need to do is to analyze heart facts. ah, we have united nation statistics which shows what this happening was the foot prices. and if you look at her, there's the, the, you will find out that it's not the past 2 months when the foot prices start to grow. in the past 2 years, the girls of the index of food prices, which is calculated by the native nations, is 70 percent more than 70 percent. and most of it,

more than 50 percent happened before february. so no swings like that. we such huge increases in prices are not happening due to the one that use them is also always a combination of a number of reasons which is leading to such results. and if you start analyzing, when this prize girls started to happen, it's not only wheat, it's not only oil oil, so it's different types of food, oranges. for example, it dosa went substantially up in terms of prices. and if you're doing this and that is, as you will find out it's, it is a 2 year period when the foot prices were constantly clipping up. what are the main reasons behind that? number one reason, because all of this started in the middle of 20 to 20. ah, what triggered the gross in foot prices,

but little 9 foot prices for commodity prices enterprise as they all started the went, the goal is started to go up. ah, of course it, sir, no mistakes from countries like united states, mostly united states in terms of mine. 3 parties are in the 2 year periods since february 20 to $20.00 united states have increased money supply by almost 40 percent for 0. it's around $60000.00 which but brings it to support the economy. and of course, this money food at all the markets. and these started the process or full price rules. so it was the 1st phase, 2nd face in the meat 20 to 21. it's the energy crisis in europe. here we have mistakes, mainly from the european commission on the energy policy over reliance on the

renewables. all reliance on short term gas contracts, which fueled gus prices to go up, which substantially let the decreasing fertilizer production increasing fertilizer production means that you have lower harvest. and of course, this also was heavily impacting the food prices. and the so the face and he, he would find that it comes to february, but it's not about the operation in ukraine. it's about a lot of sanctions imposed on the different fertilizer productions in bilaterals, in russia. it's sanctions on shapes. it says sanction some payments which halted trait. russia wants to exports more foot. russia wants to export martha dillard's us. no bill at us on its own. they also want the export muffin to the laser spot though they sections up looking excess for the global market. and limits,

of course, ah, supply. what with, with regards to sanctions, there are now i believe, 11000 more than 11000 different sanctions, but western countries and allied nations, kaden's great kind of sanction craziness. well, in, in this atmosphere you have the west saying that russia must continue to export fertilizers, agricultural products at the same time as that sanctions, russian shipping, which are, which in turn, transports these goods all over the world. oh, we have now an embargo on, on oil ship by, by tank is over the over the seas. so in the, in the situation where you have western insurance companies refusing insurance to russian vessels. how can the west then blame russia? what is the logic here to say that russia is restricting supplies? you're asking me, you know, that her, at some point we,

you lost all understanding of what's happening because, you know, the sanctions that they are printing out every week, every day maybe in some, in some of the cases. there seems to crazy that is no logic behind that there is no economic logic, they're hurting themselves. inflation in the european countries, such as estonia, is above russian level. russian, rural is stronger than the euro. so what they're doing? no, nobody in the sense. and of course, this craziness in policy making, it leads to unfortunately to wear it painful results for the whole world, especially for countries in africa, narrow volt. because all these results in lower supply of energy, lower supply or foot coming to the global markets. well, with, with regards to who is, who is to blame? you have the west, our coming out and saying with african states have fallen under the sway of russian propaganda because they believe it is the west. as you mentioned that the west is

guilty for this food crisis because of their policies because of these, of the sanctions. can we get an explanation on, on why the situation is so difficult in africa, in the middle east and why they believe that the west is guilty for this festival? you need to understand that, sir. the sanctions plate only small. it all on top of all the problems that we accumulated in the previous years, like i said, the mind for a policy might be a minute printing in the united states. because what does it means? it means that in any case, used by the level of foot prices, united states will print money and buy the food for themselves. because you know, the few grants is that the united states and is consuming more than 50 percent of killers per, the more them no global average. so they're taking all the food. they are printing the money. they're taking all the foot. and of course, they are taking the food from those who cannot afford it. and of course it's

countries or full countries in africa, po, countries in the arab world. and this resulted up for the food which actually in reality that is enough food on this planet. if congress like united states to consume less, there would be enough wood for every one. well, the with, with regards to who gets how much, how much food, western countries and out trying to get ukranian grain out of ukraine. they say they are doing this for the good of everyone to make sure that the people who need that grade and you know that on the, on the agree and a green one. interesting fact. of course everyone is talking about the $20000000.00 tons. but in reality, if you look at the beta alpha u. s. department of agriculture, we'll find out that's the estimate will 6000000 on the stokes and european lot 20000000 tons. but nevertheless, let's assume we're talking about a $20000000.00 tons of ukrainian we'd it's only 2 and a half a cent of the global with production. we were global. google will production of

wheat use $770000000.00 tons per year. wanted to enough percent. and with itself represents only one fifths of the global kill it production. so it means that we're talking about 0.5 or even less, if we're talking about $6000000.00 tons of the global food production. so it's what is most eager on top of that russia is ready to export $16000000.00 tons more than that was exporting last year. so covering all the short, full, all the possible worshipful and of and, and the same time, you know, programs which we're witnessing in india was the draught was the decreasing of how fast they are losing. according to the estimates different estimates. 11000000 tons only because of the weather in india. so it's one of the number of big number of factors which are impacting the debt with market. and in terms of foot, it's not that important. comparing with the, you know,

money printing and the decreases hurt eliza crisis. oh, those stories which were the result of the mistakes from policy makers in united states in europe. that is the key result that is the main result of all the problems with the foot that we're witnessing business. well, how, how significant is the danger of a famine of a famine in the world today? especially given the fact that, as you say there is this, this shortage caused by all sorts of factors. but we saw during the pandemic, for example, when, when mosques and surgical gloves were in short supply, we sure richie european states the united states. grab all of these applause, stop polyps, steal them even from each other. the. this is european states stealing each other, supplies. how likely is that to happen? now? again, except with food is the same story. that's what i'm talking about. if you're in a,

if you're in like a states, you're just printing money and taking the foot. and you don't care about anyone else on the planet. well with, with regards to the, the food cross itself, as you mentioned, there is this also electricity crusts. there is a fuel crisis, there is a fertilize across, is compounded by, by these closet, is this the though the perfect storm? we have a synergy of crises coming together when you have a perfect storm, like i've said, and number of factors coming together is the reason and not a single factor can happen at price increase of 72 percent, so 0 percent. so it's of course, mind the policy and the jury graces. so federalized crisis, all these combined results in programs that we are facing business. well, the united, the united nations of the world trade organization have said that the number of

people has doubled hungry people. those on the verge of starvation has doubled. over the past 2 years since the coven pandemic began, we're talking now almost about 300000000 people. if, if the situation these crisis continue, if the food shortage continues, what are these people to do? well, it's a big problem. it's a really big problem in russia on our side will be trying to do everything it can to try to provide more food to the market. unlike united states which are increasing in birth, their net importer of foot, and the increasing ah, the sum of money they spent on the food globally faster than the sons of they are receiving for the exports of food. russia will be providing more and more food but so unfortunately holding the increase that we will half an hour experts are this year and the next year will not be enough to cover all the needs. and

unfortunately, the people like it was happening in the previous 4th crisis. 10 years ago. they will be following the foot. so they will be going to countries which are buying the food from them to europe, to united states, to talking about the, the fertilize, the shortage of food and, and all these crisis coming together. you have the west leveling will the sanctions against russia thousands and thousands targeting almost every sector of the economy . and then you have russia, which has come out and limited its own fertilizer exports. could you explain this to us? is it, the russia doesn't want to export? so russia was not limiting because we were continue to export fertilizers, what we were doing. we were securing the supply for the year, a local g month. so we took the number of the warden himself fertilizers when you to half the where the good harvest of this year,

which will be providing for the market. so when the which sites will be heading highly likely ricker, william of harvest and will be able to promote, whoa to was the foot. so, all the measures at partaking the rush in terms of fertilizers for her only limited to securing domestic supply. everything, all the warning was above that or exported to the global market didn't look at the figures. he was she that threshold was not a stopping exporting for to waves, but the west has tried to restrict motion fertilizer. yeah. so that is the broader happened that is that, is that what i mean like a couple of months, because if you don't have a sheep, if you don't care for a partner which is buying the fertilizers, of course it's very hard to supply it to the global market actually is already the supply more most on the food side was on the federalized, the site. but it's really hard to do with the logistics crashed by the sanctions.

well, now that you've explained, you know, but by the way, at some point when united states understood the problem, they lift the sanctions on the federalist in russia. they impose its and in a couple of weeks after that they, it is but your opinion a capital sanction. so you know, it's, it's craziness. there is no logic. there is no logic behind the steps they are doing. this is either the question that begs itself up, because you've now explained all these mistakes. the united states imposing sanctions, the lifting them, the european union threatening sanctions. then saying that, you know, walking back on them, saying that none of this is going to be too hard for what is going on in washington in brussels with the sanctions because they, they want people to believe that they have this plan, that they have this strategy with regards to russia, you should, you should ask them because i see no clear answer the question. thank you very much . thank you. i certainly quite the wide ranging interview there. so we have time

for, for now. my name is peter scott's and thank you for watching lou ah ah mm.