Don’t Throw Russia Out of G20, Aid Group Says, with Eye on Food Crisis

Ears of wheat are seen in a field near the village of Zhovtneve, Ukraine, July 14, 2016. (Reuters)
Ears of wheat are seen in a field near the village of Zhovtneve, Ukraine, July 14, 2016. (Reuters)
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Don’t Throw Russia Out of G20, Aid Group Says, with Eye on Food Crisis

Ears of wheat are seen in a field near the village of Zhovtneve, Ukraine, July 14, 2016. (Reuters)
Ears of wheat are seen in a field near the village of Zhovtneve, Ukraine, July 14, 2016. (Reuters)

Excluding Russia from the Group of 20 major economies and other international institutions could slow efforts to address a worsening global food crisis exacerbated by the war in Ukraine, the head of German aid group Welthungerhilfe (WHH) told Reuters.

Mathias Mogge, chief executive of the group, which serves 14.3 million people with projects in 35 countries, said it was critical to maintain communication with Russia, one of the world's largest producers of wheat, in tackling the crisis.

"Of course, Russia is the aggressor here, and there needs to be sanctions and everything. But in a humanitarian situation as we have it today, there must be open lines of communication." Mogge said in an interview this week.

Mogge's comments come days after US President Joe Biden said he thinks Russia should be removed from the G20, although experts say that is unlikely to happen given lack of support from India, China and several other G20 members.

Russia's invasion of Ukraine in February is driving food prices sharply higher across the world and triggering shortages of staple crops in parts of central Asia, the Middle East and north Africa, according to United Nations officials.

The war, which Russia calls a "special military operation," has slashed shipments from the two countries, which together account for 25% of world wheat exports and 16% of corn exports, driving prices sharply higher on international markets.

Mogge said he expected Group of Seven leaders to address the issue during their upcoming meetings.

Russia was still part of what was then the Group of Eight during the last food crisis of 2007 and 2008, and played a constructive role in reducing hunger worldwide, Mogge said.



Saudi Transport, Logistics Sector Set for 10% Growth in Q2

An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
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Saudi Transport, Logistics Sector Set for 10% Growth in Q2

An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)

As Saudi companies start reporting their Q2 financial results, experts are optimistic about the transport and logistics sector. They expect a 10% annual growth, with total net profits reaching around SAR 900 million ($240 million), driven by tourism and an economic corridor project.

In Q1, the seven listed transport and logistics companies in Saudi Arabia showed positive results, with combined profits increasing by 5.8% to SAR 818.7 million ($218 million) compared to the previous year.

Four companies reported profit growth, while three saw declines, including two with losses, according to Arbah Capital.

Al Rajhi Capital projects significant gains for Q2 compared to last year: Lumi Rental’s profits are expected to rise by 31% to SAR 65 million, SAL’s by 76% to SAR 192 million, and Theeb’s by 23% to SAR 37 million.

On the other hand, Aljazira Capital predicts a 13% decrease in Lumi Rental’s net profit to SAR 43 million, despite a 44% rise in revenue. This is due to higher operational costs post-IPO.

SAL’s annual profit is expected to grow by 76% to SAR 191.6 million, driven by a 29% increase in revenue and higher profit margins.

Aljazira Capital also expects a 2.8% drop in the sector’s net profit from Q1 due to lower profits for SAL and Seera, caused by reduced revenue and profit margins.

Mohammad Al Farraj, Head of Asset Management at Arbah Capital, told Asharq Al-Awsat that the sector’s continued profit growth is supported by seasonal factors like summer travel and higher demand for transport services.

He predicts Q2 profits will reach around SAR 900 million ($240 million), up 10% from Q1.

Al Farraj highlighted that the India-Middle East-Europe Economic Corridor (IMEC), linking India with the GCC and Europe, is expected to boost sector growth by improving trade and transport connections.

However, he warned that companies may still face challenges, including rising costs and workforce shortages.