ERBIL, Kurdistan Region - The Kurdistan Regional Government (KRG) decided on Wednesday to remove import tariffs on a number of goods for two months, including essentials and milk for children, following soaring prices due to the Russian invasion of Ukraine.
Russia announced the launch of a “special operation” against Ukraine - widely seen as a full-scale invasion - on February 24, which immediately affected prices in countries that rely on both neighboring states. This included the Kurdistan Region, where the prices of essentials like sunflower seed oil more than doubled over the coming days, becoming rarer in the markets as people rushed to buy supplies.
Kurdistan Region Prime Minister Masrour Barzani said in a statement on Wednesday that his cabinet discussed preparations for “the expected economic consequences of Russia-Ukraine war” during a weekly meeting earlier in the day. Following suggestions from several ministries, the government decided to temporarily remove import tariffs on several goods, he added.
“The Council of Ministers approved the suggestions of ministries and relevant authorities regarding the removal of tariffs for two months on goods like flour, rice, sunflower seed oil, vegetable ghee, tea seed, sugar; dried legumes (chickpeas, lentils, borlotti beans, black eyed peas, beans and mung beans); and all types of milk for children,” read the statement.
Kurdish officials have warned that any business that exploits the crisis by increasing prices or saving goods will be punished - and some have already faced consequences.
Last month, Barzani called on people to avoid panicking.
“I would like to inform our people that there is no need to panic as all necessary procedures have been taken and the essentials [currently] available in the Region can suffice us for at least six months to a year,” PM Barzani said during a health event in Erbil on March 8. “We have tasked the relevant authorities to closely monitor the market and ensure that those who exploit the prices by increasing them face the law,” he added.
Russia is the world’s top wheat exporter and Ukraine is known to be the breadbasket of Europe, with Middle Eastern states heavily reliant on Ukrainian agricultural products.
