LESOTHO is already feeling the heat of the Russia-Ukraine war, says economic issues commentator Lerata Pekane.

He told Metro the conflict between Russia and Ukraine had affected the global economy via three main channels: financial sanctions, commodity prices and supply-chain disruptions.

“Rising food and transportation costs are the most significant effect that the country is grappling with,” Mr Pekane said.

He said while no simplistic conclusions could be drawn from what looked like a complex issue, Lesotho should brace for rising commodity prices and supply shortages due to the on-going devastating Russia-Ukraine conflict.

He said the sanctions imposed on Russia as one of the world major oil producers, meant the demand for oil was already high while the supply was low.

“Now players in the public transport are hamstrung by the high costs of petrol, making business difficult for them,” he noted.

Countrywide, transport operators are planning to embark on a strike demanding a hike in bus fares so that they could stay afloat.

The operators are seeking an increase of M3 for local taxi fare to cover for the persistent petrol costs although this is going to become costly for commuters already struggling to find jobs or go to work.

Mr Pekane said Lesotho should brace for rising commodity prices and supply shortages triggered by the war, where the high petrol price would have a multiplier effect on the prices of goods and services.

“It is still unclear as to when the war will end,” he said, adding that the multinational companies in Russia had their hands tied as they scrambled to safety amidst mounting business risk.

As countries supplying Russia experience trade barriers due to sanctions, both Russia and Ukraine play key roles in the world's supply of raw materials such as wheat, sunflower, aluminum and nickel.

A study shows that since the crisis between Russia and Ukraine erupted, the global prices of wheat, sunflower or crude oil have reached unprecedented levels.

“This means African nations, which have been trading with Russia for years could be left short of supplies,” said Mr Pekane.

Also, Maghreb countries rely on Russian and Ukrainian wheat and for more than 50 percent of their imports.

“The war itself has serious complications,” Mr Pekane said.

“The war will have long term implications on the already fragile economy of Lesotho. For the country that is not food secure like Lesotho, this means food prices will soar to cover transport costs.”