The Suez Canal is already feeling the consequences of the conflict between Russia and Ukraine and preparing for adverse outcomes, head of Suez Canal Authority (SCA) Osama Rabie said on Tuesday
CAIRO (Pakistan Point News / Sputnik - 29th March, 2022) The Suez Canal is already feeling the consequences of the conflict between Russia and Ukraine and preparing for adverse outcomes, head of Suez Canal Authority (SCA) Osama Rabie said on Tuesday.
"The canal is experiencing the effects of the crisis between Russia and Ukraine, a lot of ships used to come to the Suez Canal from the Black Sea... The effect of this conflict on us is still weak, we are prepared for a scenario when the consequences will be more serious," Rabie told reporters.
A spike in oil prices in early March due to the conflict in Ukraine and anti-Russian sanctions forced the SCA to raise transit tariffs for ships, according to the chief.
"The increase in oil prices and vessel rental prices, the military conflict between Russia and Ukraine caused a temporary increase in transit tariffs," Rabie said.
He also noted that this is not a permanent measure, and tariffs may be revisited later.
On February 24, Russia launched a military operation in Ukraine after the breakaway republics of Donetsk and Luhansk appealed for help in defending themselves against Ukrainian provocations. In response to Russia's operation, Western countries have rolled out a comprehensive sanctions campaign against Moscow.
