Economic consequences of Russian-Ukraine War

[DrBeer]

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.

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.

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.

[el kaka22]

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.

[ShowOff]

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.

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.

[Tony116]

...
what other economic consequences do you think this war can have on the global economy.
Source:

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%.

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.

[YOSHIE]

what other economic consequences do you think this war can have on the global economy.

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.

[DrBeer]

...
what other economic consequences do you think this war can have on the global economy.
Source:

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%.

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.

[Smartprofit]

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).

[Pomogator]

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!

[Drane007]

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."

[AicecreaME]

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.

[Ozero]

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!

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.

[bustabitsboy]

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!

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 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.

[777Jolami]

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.