The effects that the Latin American economy will have due to the Russian invasion in Ukraine

Russia’s invasion of Ukraine is progressively affecting various Latin American countries such as Brazil, Colombia, Ecuador, Mexico, among others. The respective products that were exported and imported to the nation presided over by Vladimir Putin are having a low volume of commercial exchange.

The economist specializing in Latin America of the British consultancy Capital Economics, Nikhil Sanghanitold BBC Mundo that “trade with Russia and Ukraine represents less than 1.5% of the total exports and imports of goods of the main Latin American economies”.

In that same line, the Observatory of Economic Complexity (OEC) He stated that, in 2021, Russia exported US$11,000 million to Latin America; however, this region only sold US$8.5 billion worth of products to it.

Russia exports largely to Brazil and Mexicocountries with the largest economies in Latin America. In addition, the OEC indicated that, last year, the main Russian products sold to this region were fertilizers, steel, refined oil and vaccine doses. Sputnik.

Instead, the European nation buys the following products from Latin America: fruits, vegetables, meat, fish. Likewise, Brazil exports soybeans, tobacco and coffee; and Mexico sends cars, computers, beer and tequila.

The recent war has exponentially increased the prices of raw materials such as agricultural products, metals and the Petroleum. The latter benefits oil nations such as Brazil, Colombia and Ecuador.

For Gilberto García, chief economist at the Observatory of Economic Complexity, the Russian invasion of Ukraine will affect Latin America, despite having low trade with Russia.

In Peru, the weighing sector has been affected in recent weeks as a result of the Russian invasion of Ukraine, and its anguish goes beyond having to redirect its shipments to other European markets other than Russia.