Topic: Economic consequences of Russian-Ukraine War (Read 226 times)

The Russia-Ukraine conflict has many consequences, leading to sanctions, creating many risks for the global economy, and disturbing financial markets.  Rising energy prices hurt consumers, a full-blown energy crisis could lead to a global recession.

This is not a war between Russia and Ukraine. This is a military operation and it has certain goals and objectives. And why should the troops enter Kyiv if this is not planned? If European countries supply weapons to Ukraine, this war will not end.

It is hardly worth agreeing with this. Everyone believed in the power of Russia so much that in Russia they themselves believed in their exclusivity, and therefore, in the end, they decided that they could not give a damn about any norms of public order.
How Russia prepared for the war against Ukraine, we can already see by how catastrophic damage in manpower and equipment it suffers from the Armed Forces of Ukraine and its people. Already, Putin and his entourage have given up on capturing all of Ukraine and have withdrawn their unfinished troops from the center and north of this country. Now they are trying to expand the occupation in the east of Ukraine and keep the land corridor to the previously occupied Crimean peninsula. But Putin is unlikely to succeed in this either. In a few weeks it will be possible to verify this.
The catastrophic consequences for Russia in this war of conquest are still ahead, and they have already begun to understand this.

This conflict between Russia and Ukraine really has a lot of consequences. And countries all over the world felt that the moment the invasion became more serious and the sanctions imposed grew larger in number and heavier. During the early times of the Russia-Ukraine conflict, the prices of oil in the market evidently sky-rocketed due to limited sources because of the sanctions. As Russia holds a large supply of oil, which resulted to oil-price hike that nearly or even surpassed the original amoun prior the war.

This alone, has brought so many repercussions and affected so many people all around the globe. The moment the oil price increased, other goods and services also followed. The increase in transportation fee due to sudden increase of price of oil triggers the increase of pice of goods and commodities as well because it uses transportation to import and export in travelling the goods.

Right now, here in our country, the price of oil is slowly decreasing. Although it's still not considered to be back to normal pricing as before, but it's still better compared to almost before which is so damn high for a liter. Hopefully, this will continue so that the average and lower class could get by and survive the daily basis.

Gun vs. Butter: The World Will Never Be the Same #Russia Vs Ukraine War


Although the war is going on between Russia and Ukraine, its impact will be unprecedented on the whole world in the near future.

Let me explain why.


Government spending of finite resources is allocated between guns (defense) and butter (civilian goods).



In imperial times, government (Empire) spending on defense was 70%, but before this war, the average spending of world nations on defense was 6%, which means they have been spending more on civilian goods in opposition to defense from imperial times.

That shows that world nations have been focusing more on the welfare of society at large and trying to have peaceful relationships with other nations, so they do not need to spend more on defense.

Suddenly, due to the possibility of war and concerns that war could happen in the near future, As a result, certain governments have increased their spending on defense significantly and will likely increase it in the future.


This will cause governments to spend less on civil goods, such as the global health infrastructure initiative, combating global warming, hunger, education, and so on.

I would like to conclude with a great man's saying, "War is always a failure. It means we've failed in diplomacy and we've failed in talking to one another."

Indeed, many underestimated the place of Russia in the mechanism of the world economy, and this is very bad. Russia was very well prepared for the war and its consequences, but the West and the United States did not work out the levers of pressure very well. Of course the rejection of Russian oil and gas will hit its economy very hard, but many Western countries will not survive this!

I used to think that The Lord of the Rings was just a fairy tale. 

I thought absolute evil didn't exist.  I thought Melkor, Sauron, Balrogs, Trolls were just fiction.  Now I know for sure that absolute evil exists.  Evil has its physical embodiment, but its main forces operate on the mental plane.  Evil captures the souls of people.  It feeds on people's emotions, their fears and hatred.  Evil spreads very quickly and can easily spread to other countries, to the people living in them. 

Therefore, one must be very careful not to let evil into one's soul.  We still cannot estimate the extent of the catastrophe that happened (including the economic consequences of what happened). 

The global economy has been hit very hard.  However, everything will depend on the further development of the situation. 

It is still very difficult to predict what will happen to the world economy in a year (two, three).

I agree. Like any transitional process, changes in the market very often lead to rising prices, increased demand, and hysteria. But.. This is a temporary process. The modern oil and gas industry extracts and supplies to the market quite sufficient quantities of this raw material. The only question is the construction of logistics routes. And this is a matter of several years. But in the end, you will get a balanced, competitive, high-quality market with adequate suppliers, without economic terrorists. Plus, your conscience will be clear that your money does not go to the killing of children, violence, terror of civilians in other countries, by the supplier's army.

conflict always brings bad effects globally, especially the war Russia vs. Ukraine, which I know of the consequences that could have a large enough impact on the economy could tear up the economy as a whole/globally.

For example: that I know.
• In terms of oil and gas skyrocketing against the invasion of Russia and Ukraine.
• foreign investors or companies have left Russia and Ukraine, 80% of them have left the country.
As we know (Brent North Sea) crude oil and fossils of these two natural resources are in great need by the international.
• On the other hand, the Netherlands also complained about the high gas price.
• In terms of food and agriculture, the economy is crashing.
• Many stock markets, which operate in the country, are closed, resulting in a worse economic impact.
• slow economic development in all sectors.

That's what I know of the consequences for the global economy that has deteriorated since the outbreak of the Russia vs. war. Ukraine.

It doesn't just affect your country, I think we're all going through our worst days. Gasoline prices increase, leading to most other essential commodities also racing to increase prices and we are paying 10% -15% higher than before.

If this war does not stop and the bans will cut off Russia's oil supply to the world then the production lines will also be discontinued, I think we will have to pay a much higher price than the current price.

We can actually feel the impact of war now where economic problems continue to be a problem that is the main impact because of it. The economic crisis and rising inflation have affected many countries and it may take several years to stabilize.

It's a bad period for the economy, but for people living in poor countries, I don't think it's too much of a problem because they're used to adversity. However, the economy must return to stability so that this bad period can be gradually resolved.

Considering how economical crisis is basically not even a crisis anymore and the regular part of our lives, I have to say it is not really that much of a big deal at all. It is quite good and I am pretty sure that it is not going to be that weird. Obviously, it is bad, obviously it is not as good as it can be, but when has it ever been?

We are living in terrible financial situations like at least once every decade and that usually means that it happens for a year and over, this time it took more than two years and it is terrible but nothing new. I am basically accustomed to be living in a terrible financial situation, and feel like this is the new normal now.

A couple of questions:
1. Name the global products, or more correctly, the unique ones that Russia exclusively supplies to the whole world, and on which the whole world depends?
2. The Russian gas industry in the EU is not a matter of market formation, but of corruption. Spend a couple of dozen hours, study the question of how since the 1990s in the EU, mainly by Germany, France, Italy and several other countries, the Kremlin lobby has been formed, and in fact all conditions have been created for the monopolization of the energy market by Russian suppliers. There is no unique feature other than mass bribery in Russian gas.

We already feel the effect of that war, the oil price has increased drastically and it has affected everything, in fact, in our country, the inflation rate has increased from 3% to 4% just this month, so it really make people struggle especially those who are just earning a salary enough for their basic needs, now it's not anymore enough.

Many countries depended on Russian goods and natural resources. Russia and Ukraine is one of the biggest wheat producers in the world and middle Western countries depended on them. After the war kicks out the price of food spiked in those countries dramatically.

Russian gas can be said as a lifeline of the EU economy. That is the reason most of the EU countries denied putting any sanctions on the energy sectors due to war. Not only that Russia is the best rocket engine producer in the world and the even USA is dependent on that. That is the reason roksome corporation is still out of the sanction list like many other companies in Russia.

Actually, it's not easy to put sanctions on a country like China or Russia. For global trade and manufacturing world needs these two countries county.

If Ukraine only agreed on the first place this wouldn't happen but they want to see how furious Putin then Ukraine suffer but I do hope this will stop since the Ukrainian president agreed not to make pact with NATO. This should stop and the peace talks will continue but the sanctions isn't gonna stop although I think Putin have a plan about this but he's just too busy to make the economy back again due to sanctioning by different countries.

world economic will face hard difficulties if this war continue for long time. every commodity price soar uncontroll , especially energy which Rusia be  biggest exporter there. Oil and gas stopped to unfamiliar countries and its trigger inflation in some countries. this war really bring bad impact and need to ended immediately or financial recession may happen.

they wont stop till their main purpose achieved, and this moment still far from this. unexpected accidents maybe still could happen in future. UN must take main roles to stop this war.

The consequences is already happening, many commodities are now getting more expensive and this is not just between Russia and Ukraine, other countries are also affected. This is a long war that can’t be stop easily even the big countries, and the only way to stop them is to keep on resisting just like what Ukraine did. I hope Russia wont do any major attack again and go for the peace talk, they ruin the whole country and they have to pay for it.

We already talked about many consequences but still Russia didn’t want to fully stop their operation and will still continue to be on high alert for their own security, many Russian people already experiencing the consequences of this war especially the ordinary people, what other countries can do for now is to condemn Russia even if they are one of the major supplier of important goods. Economic consequences will be a big thing, we should not ignore this because inflation can boom if left unnoticed.

There’s a big reason why Russia attacks Ukraine and world leaders knows this, but then again war is not the best solution to any problem they should talk peacefully. Western sanctions seems not effective for now, USD/RUB is still in favor to Russia but hopefully Russia will soon realize the bad effect of war. Many countries are already suffering because of this conflict, we should all be concern about the situation since we are all affected.

As felt until now due to war the economic sector was destroyed, and people began to save themselves and try to ignore what was happening. Oil, Gas, and necessities such as food are now drastically increasing in price in the market. Because basically whoever goes to war, everyone feels the impact. Russia is unlikely to back down when what they hoped for had not been achieved. Economic, social politics in Ukraine are now starting to split, some are surviving and some are better off going to other countries to secure their assets. Likewise, Russian investors are almost trying to avoid too big an impact.

my country is currently affected by the Russia-Ukraine war...

During this time my country routinely buys oil from Russia but a few days ago Greenpeace boycotted our country's oil carriers and caused a shortage of oil in our country, now the price of oil in my country has increased by 25%, if this condition continues, it is possible that prices will even rise, basic needs here will also increase by 20% - 30%.

The Economic was spoiled all over the world.This is only due to the war between this two country.The war was between the binladen and American,but it was revealed after some years.So their is some reason behind the Russia -Ukraine war.Same was revealed after 4 to 5 years.But we need to short this out.Or else we need to buy a glass of water at 5$,which was a huge economic crisis.

Of course it will affect the world economy, domestically it can increase food and clothing prices as well as affect exports and imports.
and global impacts are rising oil prices on world markets, rising world natural gas prices, rising food prices such as wheat and rice, rising commodity prices in world markets such as. CPO, coffee, sugar, chocolate, spices and other commodities.
World trade will be disrupted because certain seas can be blocked due to wars between major countries, for example the Basphorus strait is closed by Turkey.

It is notable that we have an environment of uncertainty, the consequences of the war in Ukraine is creating an economic crisis affecting the prices of energy and other raw materials.
The tension in the financial markets has caused volatility that will continue.
Central Banks are trying to maintain price stability and offer better conditions.
In the productive sector we can see references that have lowered industrial production, which caused shortages and inflation.

Almost all countries feel the negative impact of the war that does not know when it will end. And we are just victims of uncertainty about the responsibility for rising economic resources. Materials like the price swelled and it was very unpleasant. I can't imagine what it's like to be in a war zone where you have to survive without certainty, going to move places to save yourself. The source of meaning is lacking, the supply of survival is uncertain and then can people still think that this is aggression for the interests of the oligarchs?

The economic consequences will be very noticeable and, of course, negative.
On the one hand, the supply of hydrocarbons from Russia to the EU will be cut off. But I hope that the market will self-regulate, and in 1-2 years, isolated Russia will be ready to sell oil for food.
But for the next year or two, we will have to come to terms with the increase in the cost of energy resources.
The second problem is the supply of food products, where Ukraine occupied a significant share, at least in supplies to the EU/USA. What will replace the deficit is hard to say, perhaps Turkey will try.
On the other hand, now a huge amount of money will be invested in Ukraine to restore infrastructure, housing stock, and industrial enterprises. And this means an influx of investments, the growth of the labor market, and the potential launch of more effective solutions on the territory of Ukraine.

Many countries are likely to be affected as well as a result of the ongoing Russia-Ukraine invassion but am well assured that Russia will loose more from the edge because it engage the war at first, secondly the world have developed a kind of sentiment against Russia because of the uncalled invassion and are breaking ties and relationship they might have developed in the previous with Russia, the Russian economy is capsizing and the rubble is of less international value, investors are leaving the country and the people are suffering, centralized exchanges places embargo on citizens account and the likes.

Despite all these stats we fail to educate ourselves about the long term consequences as well. Millions of people are starting a new life which does mean that they would be living under poverty for a while and would clearly need help from governmental authorities and other people as well, which would start to diminish after a while as well.

Many students have lost their studies and whatever was holding onto their family in regards to their better future as well, therefore they won't be able to get competitive salaries and good jobs as well. Whatever that is being done is incredible but it's not placing all the students in Universities back.

Many houses and buildings are destroyed, making it nearly impossible to rebuild in a short time, now Ukraine will lag behind a few years.

These problems are not just with ukranians but Russians as well since they are also facing difficulties due to sanctions and this is fairly extended in the EU as well due to rise in the prices of general things like Oil. You can see how prices are rising in Germany for cooking oil as well.

The war is, of course, economically devastating, and both countries will suffer heavily from it. The difference is that Russia brought this war upon Ukraine, and Ukraine now must fight if it wants to survive. But yes, of course, the war will have global implications. Oil and gas prices, airspace changes, are things which are already very visible. Another thing I'd add is wheat, because Russia and Ukraine are some of the world's largest suppliers, especially to countries of the developing world. So regional famine is also probably going to happen (it's not just about the prices, but also about a humanitarian tragedy).

Other consequences from the sanctions will be inflation in local production as the will not have direct contact with the international market and will result in producing more than the can consume as the price of oil keeps inflating as well as the supply-chain link.

Now the EU has joined force with the US to serve Russians  sanction we will be more of international restrictions of Russians moving across this nations

During times of crisis: suicide rates, drug overdoses, theft, homicides and crime dramatically rise. Homeless encampments swell in size. Migration rates increase, driven by refugees seeking to escape bad living conditions.

It happened during the 2008 economic crisis and COVID as well.

Having witnesed the effects of dependence on russian oil and uranium fuel, nations could seek to become more independent on local suppliers in an effort to depend less on global markets. The way that americans once sought to reduce dependence on oil from the middle east. Perhaps this is an outdated and obsolete mentality. People today don't seem to care much if they depend on foreigners for essentials.

The united states served for many years as a global police force. As the US dollar declines in its role as an international reserve currency, america's role as global police could also decline.

The ongoing war between the two countries will possess a great consequences on the their economic activities and will have great effect on the global society. Russia-Ukraine war has been seen to be dramatic and rapid, but its global economic consequences will be much slower to materialize and less spectacular time. The Economist intelligence Unit (EIU) clearly analyzed that the conflict between Russia and Ukraine will affect the global economy via three main channels: financial sanctions, commodities prices and supply-chain disruptions.
what other economic consequences do you think this war can have on the global economy.
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