As countries around the globe get increasingly concerned about rising tensions in Russia and Ukraine, President Nana Addo Dankwa Akufo-Addo has spoken about how the effects could trickle down to affect Ghana’s economy.
Whilst expressing concerns about Ghanaians living in Ukraine, he urged that they make use of the country’s mission and other government places that belong to the government of Ghana or countries with bilateral ties with Ghana.
According to him, it is important that Ghanaian citizens in Ukraine, which is being threatened by invasion by Russia, take temporary measures to keep safe while government engages authorities, relevant diplomatic missions, and the honorary consul on further measures.
Speaking on behalf of the President, Information Minister, Kojo Oppong Nkrumah, also noted how the current conflict between the two Eastern European countries; Russia and Ukraine can adversely affect global economies including Ghana.
Increase in oil prices:
President Akufo-Addo noted how crucial a steady supply of crude oil from Russia is to stabilizing rising energy prices and supply-demand disparities in commodities, especially in Ghana.
According to him, it could translate to the increased global oil and liquefied natural gas prices which could adversely affect many importing countries.
“This means that fuel prices in the country are contingent on the ongoing conflict and likely to negatively impact Ghanaians, who, for apparent reasons, are already facing spikes in fuel prices,” he added.
“Although the Russian-Ukrainian crisis is not happening on the African soil, the interconnectivity of the world economy and financial markets can trigger reactions in Ghana,” President Akufo-Addo stated.
“Already, fuel prices at various pumps in the country are inching towards the GH¢8 mark, causing transport fares to be increased by 15 per cent, effective February 26, 2022,” he added.
“At the micro-level, higher oil prices increase the cost of production, especially for firms that use fuel as an input and engage in transporting goods from one place to another,” he said.
“Also, an increase in oil prices increases the household’s expenses on petroleum products, leaving less to be spent on other goods. This, in the long run, negatively affects the individual’s income and standard of living thereof,” the President stated.
High cost of electricity:
The conflict could also possibly result in high electricity cost, according to the President.
“Not only will prices at the pumps rise; an increase in price on oil and natural gas will drive up the cost of electricity,” the President stated.
Meanwhile, Ghana’s Foreign Ministry has urged Ghanaians living in Ukraine to seek shelter and keep safe in their homes or government buildings amidst calls for an evacuation.
In a statement, the ministry said,
“The Government of Ghana is gravely concerned about the security and safety of our over 1000 students and other Ghanaians in Ukraine and has asked them to shelter in places in their homes or in government places of shelter as we engage the authorities, our relevant diplomatic missions and our honorary consul on further measures.”
Ukraine under attack from Russia
Ukraine asks to join NATO
Putin warns against NATO extension into Ukraine
The Ministry of Foreign Affairs and Regional Integration has expressed concerns over the security of Ghanaian students and other Ghanaian nationals living in Ukraine.
This is coming on the back of tensions that have been brewing in the last few days over attacks from Russia on Ukraine, in what many fear could be the beginning of the Third World War.
Russia is demanding for an end to NATO’s eastward expansion, which will affect Ukraine, a former Soviet republic.
But reacting to the happenings in the country, a statement from Ghana’s Ministry of Foreign Affairs said that the government will work at ensuring that its citizens in Ukraine are safe.
“The Government of Ghana is gravely concerned about the security and safety of our over 1000 students and other Ghanaians in Ukraine and has asked them to shelter in places in their homes or in government places of shelter as we engage the authorities, our relevant diplomatic missions and our honorary consul on further measures,” it said.
It is however unclear how many Ghanaians in total are currently living in Ukraine.
Why Russia is going to war with Ukraine
While there had been tensions between Russia and Ukraine, a former Soviet republic, for a long time, the situation began getting out of control in early 2021.
In January last year, Ukrainian President, Volodymyr Zelenskyy, urged President Joe Biden of the United States to allow Ukraine join NATO.
This angered Russia, which started sending troops near its Ukraine border for “training exercises” in spring last year and increased it during autumn.
By December, the US began hyping up the deployment of the Russian troops and President Biden warned of severe sanctions if Russia invaded Ukraine.
Russia has demanded that the West gives a legally binding guarantee that NATO will not hold any military activity in eastern Europe and Ukraine.
Vladimir Putin claims Ukraine is a puppet of the West and was never a proper state anyway.
This is not the first time tensions between Russia and Ukraine have reached a boiling point. Russia had invaded Ukraine in 2014 when rebels backed by President Putin had seized large swathes of eastern Ukraine and have fought Ukraine’s army since then.
