Minister of Economic Development Fayyaz Ismail has stated that the government is ready for any economic repercussions from the Russia-Ukraine conflict. He made the remarks at a times the Maldives is recording fewer tourist arrivals from Eastern Europe following the beginning of the conflict.
Speaking to PSM News, Minister Fayyaz said the government is closely monitoring the situation and evaluating the future course of action, as the Maldives will be affected if the Russia-Ukraine conflict continues. The minister noted how the COVID-19 pandemic affected the shipping industry and said that the conflict will further exacerbate it. He detailed that the cost of importing USD2,000 containers rose to USD6,000 due to the pandemic and that the Russia-Ukraine conflict will likely further hike costs due to its impact on European shipping logistics by slowing down movement near the Ukraine port and the Black Sea.
Furthermore, Minister Fayyaz said currently there have been difficulties in obtaining certain items such as construction equipment and material as well as oil and some types of food. The minister said the impact on supply will increase prices, noting the increase in oil prices are affecting fishermen. He also noted Ukraine is a top supplier of food products such as poultry to the Maldives. He said individuals and businesses should be aware of these changes and make safe investments.
Additionally, Minister Fayyaz said the biggest issue for the Maldives is debt management. He said the government will manage its debt while continuing development projects and providing essential services in a way that does not impact the average citizen.