InfoSAWIT, KUALA LUMPUR – Energy and food crisis because of the war in Ukraine, President Russia, Vladimir Putin forced European Union counties to pay off in ruble for gas in Russia. European Union is worried that sunflower oil and canola oil would be no more and would decrease food industrial operational.
Many European Union countries are considering to take out palm oil ban because of the lack stock of sunflower and canola oil. In addition, Russia and Ukraine produce about 70% of the supply.
This is double impacts for European Union after series of economic and business sanctions that were delivered to Russia because of its invasion to Ukraine.
It seems, Russia is on the air though the western countries and companies rejected to pay gas in ruble. They claimed, this breaks the contract which in the previous it should be paid in Euro.
Russia supplies one third of gas to European Union. That is why energy is the most powerful thing for Putin when he tried to replied western sanction for the invasion to Ukraine.
France and Germany, for instance, are now preparing the possibility to stop gas from Russia. This is an indirect fortune for Malaysia, in this case, crude palm oil.
Many political and economic experts said that European Union countries never thought that they should take out palm oil ban after every allegation saying that Malaysia is one palm oil producer that involves in deforestation.
European Union countries and non-government organizations accused, the vast rain forests were cut off to be substituted into pam oil plantations that produce green-house gas.
With no mercy they attacked Malaysia and Indonesia that produce about 85% of crude palm oil in the world.
For years, foreign critics attacked CPO industries in Malaysia and Indonesia by saying, there are many child labors, forced labors, and bad treatment for foreign workers.
As quoted from News Strait Times, for the unreasonable reports, two advance palm oil companies in Malaysia were banned to exports their products to United States of America and certain countries in Europe. (T2)