8 Impacts of Russia and Ukraine conflict on the world | 376 Words Essay on Impacts of Russia and Ukraine conflict on the world — LEARN WITH FUN
The Russia — Ukraine conflict was started on 24th February 2022. Russia has to face ferocious financial backlash imposed by the Western nations. It includes cutting off many Russian banks from interbank payment system SWIFT. The impacts of war are visible not only in these two countries but also around the world.
Impacts of war between Russia and Ukraine on the Global Economy
- Pipelined Gas:-Many European countries are dependent on Russia for procuring energy. Especially for pipelined gas. Harsh economic sanctions on Russia imposed by Western countries would make it very tough to import gas from Russia to the countries.
- Oil:-Prices of oil are on rising as obstruction of supply due to imposed sanctions on Russian banks.
- The supply chain of raw materials and other components required for making goods is also disrupted. It is due to shipping delays and higher prices. It would take a long time to restore normal conditions in the industries of Russia and Ukraine.
- Transport:-The war has severely disrupted global transport.
- Edible oil:-Ukraine solely exports almost half of its exports of sunflower oil. Due to blocked export, hindrance in harvesting and processing of sunflowers oil. Importers have to struggle to replace supplies. So price of daily-consumed edible oil is increased.
- Food supplies:- Russia and Ukraine share approximately 30% of the world’s exports of wheat, 19% of corn, and 80% of sunflower oil. Due to disruption in farming, in eastern Ukraine and a cutoff of exports through black seaports would impact food supplies and prices will be rising.
- Rising prices:- Russia and Ukraine together share production of approximately 12% of the world’s oil and 17% of its natural gas with the ongoing war between Russia and Ukraine and sanctions imposed on Russia have disrupted Russia’s trade with the global economy. The price will rise for energy and oil.
- Automobile sector — Ukraine is the main place where many companies manufacture components of cars for automakers. Leoni AG supplies wire systems made in Ukraine to auto companies in Europe and has shut its two factories as well as Volkswagen AG had shut its plant in Germany. The rise in oil prices and shortage of chips and semiconductors is going to hit hard the automobile sector.
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