Sanctions on Moscow threaten SA trade flows

THE crisis in Russia and Ukraine has prompted the US and Europe to ratchet up sanctions against Moscow, threatening trade flows with South Africa which last year imported 50% of its wheat from Ukraine.

Though trade with Ukraine and Russia accounts for an insignificant share of South Africa’s total, in some individual product markets it could become a problem should the situation in Eastern Europe worsen.

Last year 46.3% of South Africa’s total wheat imports came from the Ukraine and Russia. "This could pose a risk should South Africa be forced to look to other more expensive providers of wheat," said Vunani Securities economist Ilke van Zyl.

Rising food prices are among the key upside risks to South African consumer inflation.

Fortunately, South Africa does not rely on Russia for oil, says the report. Though Russia’s largest export item to South Africa is mineral fuels, oils and distillation products (accounting for 30.8% of Russia’s exports to South Africa last year), Russia supplies only 0.7% of South Africa’s crude petroleum oil imports.

But South Africa does get about 11% of its total fertiliser imports from Russia. In addition, almost 10% of South Africa’s total imports of copper wire come from Russia as does 7.4% of South Africa’s imports of cigars and cigarettes. READ MORE

Source: www.bdlive.co.za