Gas and Food Prices

There is a wave of global restrictions aimed at Russia’s economy that might cause the global oil supply to be disrupted. Dr. Gin said, “People are worried that it’s going to have an impact in the global oil markets, and that translates into higher prices as far as gas is concerned,”  Russia is the world’s second-biggest natural gas producer and one of the world’s top oil exporters. Russia is the third-largest oil exporter to the United States following Canada and Mexico. Dr.Gin said, “We import almost 600,000 barrels a day from Russia and so if you cut that off, the U.S. is going to have to go and find other sources,” and “if we go on the global oil market to do that, that’s going to drive up oil prices worldwide and that will affect us here in the U.S.”

Normally the national average gas price is $3.54 a gallon but in California, it is $4.77 a gallon. So any problems occurring in Russia and Ukraine are expected to drive prices considerably higher. Not only is gas the problem but food will also be impacted. Ukraine is the world’s fourth-largest exporter of barley, with 70% of the world’s barley production going to animal feed. Dr. Gin said, “Barley is used in two main areas. One is for feed crops and the other is for brewing purposes, so you could see the price of both meat and beer increase in the near future as a result of any disruptions of barley from the Ukraine” Dr. Gin also said that we could see grain prices going up. “Prices are going to rise for gasoline, for food, and maybe for some other products as well for some supply chain disruptions.” Biden recognized that the invasion-and efforts to defy Putin-will come at a cost to the United States. However, he wanted to reassure people that the economic suffering associated with increased energy prices in the United States would be brief.

Bay Area Response

The Ukrainian diaspora in the Bay Area expressed fear and frustration for their relatives, with some saying the US should have done more to stop the war. The San-Fransisco Bay Area is home to more than 13,700 people born in Ukraine. Hundreds of Ukrainians joined supporters from other nations for a rally in San Francisco to demand that Western partners strengthen sanctions against Russia. The gathering lasted over four hours with an open microphone. Members of Congress from the Bay Area have been quick to condemn the incident.

Are we cutting ties with Russia?

Many Western companies are cutting ties with Russia by closing stores and pausing sales. British American Tobacco and Ikea are reducing manufacturing in Russia. H&M, Nike, and Addidas paused sales. Shell and Exxon Mobile will end their involvement in Russia. For finance Western Union, American Express, Mastercard, and Visa will not work in Russia anymore. For food Burger King, M&Ms, Snickers, Little Caesars, McDonald’s, Starbucks, Pepsi, KFC, Pizza Hut, and Dunkin are all closing in Russia. For media Netflix, Disney, TikTok, Instagram, Youtube, Google, Spotify, Amazon Web Services, Uber, and Apple stopped in Russia. As well as many other companies.