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.



Oil Edges Up on Strong US GDP Data

A pumpjack brings oil to the surface in the Monterey Shale, California, US April 29, 2013. REUTERS/Lucy Nicholson/File Photo
A pumpjack brings oil to the surface in the Monterey Shale, California, US April 29, 2013. REUTERS/Lucy Nicholson/File Photo
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Oil Edges Up on Strong US GDP Data

A pumpjack brings oil to the surface in the Monterey Shale, California, US April 29, 2013. REUTERS/Lucy Nicholson/File Photo
A pumpjack brings oil to the surface in the Monterey Shale, California, US April 29, 2013. REUTERS/Lucy Nicholson/File Photo

Oil prices were up slightly on Friday on stronger-than-expected US economic data that raised investor expectations for increasing crude oil demand from the world's largest energy consumer.

But concerns about soft economic conditions in Asia's biggest economies, China and Japan, capped gains.

Brent crude futures for September rose 7 cents to $82.44 a barrel by 0014 GMT. US West Texas Intermediate crude for September increased 4 cents to $78.32 per barrel, Reuters reported.

In the second quarter, the US economy grew at a faster-than-expected annualised rate of 2.8% as consumers spent more and businesses increased investments, Commerce Department data showed. Economists polled by Reuters had predicted US gross domestic product would grow by 2.0% over the period.

At the same time, inflation pressures eased, which kept intact expectations that the Federal Reserve would move forward with a September interest rate cut. Lower interest rates tend to boost economic activity, which can spur oil demand.

Still, continued signs of trouble in parts of Asia limited oil price gains.

Core consumer prices in Japan's capital were up 2.2% in July from a year earlier, data showed on Friday, raising market expectations of an interest rate hike in the near term.

But an index that strips away energy costs, seen as a better gauge of underlying price trends, rose at the slowest annual pace in nearly two years, suggesting that price hikes are moderating due to soft consumption.

China, the world's biggest crude importer, surprised markets for a second time this week by conducting an unscheduled lending operation on Thursday at steeply lower rates, suggesting authorities are trying to provide heavier monetary stimulus to prop up the economy.