The Opec Fund for International Development has allocated $1 billion (AED3.7 billion) of aid to developing countries hardest hit by the Ukraine conflict.
As part of its Food Security Action Plan, Opec’s development finance arm will provide “immediate assistance” to its partner countries to support them.
This mainly includes the import costs of basic commodities such as seeds, grains and fertilisers over the next three years, Opec said.
The group, which represents oil-producing nations including the UAE, Iran, Iraq and Saudi Arabia and Kuwait.
Abdulhamid Alkhalifa, the fund’s director general, said: “Millions of vulnerable people could face famine over the next few months unless the international community responds swiftly and effectively to the global food crisis.”
Egypt, Jordan, Lebanon, Morocco and Tunisia are expected to be among the hardest hit because of the conflict as their net food and energy imports account for between 4 percent and 17 percent of their gross domestic product, according to a recent S&P Global Ratings report.
“The Opec Fund’s nimble model has enabled us to dedicate $1bn of our investment programme to ensure food security where — and how — it is needed the most,” added Alkhalifa.
Russia and Ukraine collectively supply about 30 percent of the world’s traded wheat and 15 percent of global corn exports.
The ongoing conflict means Ukraine’s grain shipments remain out of the market as seaports remained closed while new crop production is jeopardised.
The Opec Fund was established in 1976 by Opec to provide aid to developing countries. To date, the fund has committed more than $22bn to development projects in more than 125 countries, with an estimated total project cost of $187bn.
The fund will host its inaugural Development Forum in Vienna on June 21 with a focus on climate, energy and food security.
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