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Ukraine crisis may sink SIDS economies – Ronald Jumeau

The Chair of the Executive Council of SIDS DOCK, Ronald Jumeau, today warned that island economies could be collateral damage of the crisis in Ukraine.

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SIDS DOCK, the Small Island Developing States (SIDS) sustainable energy and climate resilience organisation is worried that SIDS economies, struggling to recover from the battering by the COVID-19 pandemic, could be devastated by oil prices spiked by the crisis in Ukraine. Noting that small economies are 90 per cent dependent on already expensive oil imports, the SIDS DOCK Chair, His Excellency Mr. Ronald Jumeau, Ambassador and former Permanent Representative of the Republic of Seychelles to the United Nations (UN) and the SIDS DOCK Roving Ambassador for Oceans, said the war in Europe could sink SIDS economies, “as well as their hopes and efforts to recover from the COVID-19 pandemic, which ravaged their islands.” He said SIDS, dispersed far from Ukraine, “will experience exploding and uncontrollable energy prices the longer the shooting continues.”

SIDS already have a 90 per cent dependency on petroleum fuels for commercial energy costing more than $220 billion per year, pre-COVID-19. They will now see a significant escalation in the cost of imports, particularly food, as almost all small islands import 60 per cent or more of their food needs, Ambassador Jumeau forecasted.

The COVID-19 pandemic, he added, “had already pushed several SIDS to the brink of economic collapse; they suffered disruptions in supply chains and international trade, flight cancellations, slowdowns in the shipping industry and logistics bottlenecks.”

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Oil is over $120 per barrel compared to under $30 per barrel, two years ago. Moreover, due to the small size of their economies and the limited number of goods and services, primarily tourism, agriculture, and fisheries that they provide to the world economy, SIDS are very vulnerable to external shocks such as the war in central Europe.

Shots fired in Ukraine may sink Small Island economies  Dominica News Online

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