Yellen to unveil action plan on achieving global food security

The war in Ukraine’s interruption to wheat, barley, sunflower oil and other staples has raised already high global food prices.

Published On 16 May 2022

United States Treasury Secretary Janet Yellen on Monday met with Ukrainian refugees and stressed the need to confront Russian brutality as she visited Poland ahead of a meeting of finance ministers for the Group of Seven leading economies.

Yellen applauded Poland for helping refugees fleeing the fighting and for working with neighbouring countries to find ways to get Ukraine’s wheat and other critical food supplies to the world. She thanked the Polish for responding to “rising food insecurity” exacerbated by the war.

“The devastation in Ukraine in the past months reminds us not to take our next meal for granted, and how quickly events can take a turn for the worse,” Yellen said at a visit to the World Central Kitchen site in Warsaw.

She met with refugees from Ukraine who are running the kitchen and said she will release an action plan later this week to address the global food crisis threatening parts of the developing world.

Russia’s invasion of Ukraine has interrupted wheat, barley, sunflower oil and other staples that normally flow from Ukraine and Russia, and has further raised already high food prices worldwide. Countries in Africa, the Middle East and parts of Asia that rely on those affordable supplies face the risks of food insecurity and unrest.

Yellen also met with Prime Minister Mateusz Morawiecki to discuss tougher sanctions on Russia and strengthening NATO, which Sweden and Finland are now seeking to join.

“Poland is of an opinion that Russia should be made responsible for all damage incurred on Ukrainian territory,” Morawiecki’s office said in a statement.

Yellen also vowed to work with Poland on pressing forward with a global minimum tax of 15 percent on multinational corporations, which is meant to target tax havens, the US Department of the Treasury said.

“This is our common denominator, that we have with the US, meaning to put limits on the functioning of such places where business people run and don’t pay tax in the European Union or in other countries in the world,” Polish government Spokesman Piotr Mueller said.

Poland has blocked the tax meant to deter global companies from stashing profits in countries where they pay little or no taxes. It got final approval from more than 130 countries at a meeting of the Group of 20 economies last October, but Polish officials have questioned whether the tax will actually apply to online giants.

Yellen also will stop in Brussels before attending the Group of Seven finance ministers’ summit in Bonn, Germany this week.

In Warsaw, she spoke at the POLIN Museum of the History of Polish Jews at the site of the World War II-era Warsaw ghetto, mentioning her father’s family left a town not far away for the US.

“We must use the tools at our disposal to fight oppression. And that lesson must be applied today,” she said, noting that Russian President Vladimir “Putin’s ongoing attacks on Ukraine require that we think about what we can do to confront brutality.”

She cited the sanctions that the US and its partners have imposed, even as the European Union struggles to pass its sixth round of penalties. Landlocked countries heavily reliant on Russian oil haven’t signed on to a phaseout of the fuel.

In addressing food insecurity, Yellen said she will release an action plan this week by international financial institutions.

The US Treasury said the details will focus on how the World Bank, European Bank for Reconstruction and Development and the other global financial institutions are “stepping up, surging, and scaling their work on food security and agriculture”.

World Bank President David Malpass said last month that his organisation will provide $17bn per year to strengthen food security worldwide.

The European Bank for Reconstruction and Development last week committed one billion euros ($1.04bn) this year for the Ukrainian economy, set to be a mix of donor funds and bank funding.

Looking to more funding sources, within US President Joe Biden’s supplemental appropriations request for assistance to Ukraine, the US Treasury wants $500m for the European Bank for Reconstruction and Development. That will include money for food security and $150m for the Global Agriculture and Food Security Program, which channels funding to agricultural projects in impoverished countries.

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