Here are economic repercussions of Russia-Ukraine war

World
24-02-2023 | 11:09
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Here are economic repercussions of Russia-Ukraine war
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Here are economic repercussions of Russia-Ukraine war

There are factors and economic repercussions in any military conflict, so imagine if it was as large as Russia's invasion of Ukraine, the gateway to Europe.

First, the two sides used the weapon of economy in terms of energy.
 
Early on, Russia recognized the magnitude of the European market for its oil and gas and the influence this would have on its economy.
 
Russia exerted pressure on the Europeans and succeeded to some extent in doing so, knowing that the situation has implications for both sides.
 
More than half of Russia's exports—60%—and more than half of its revenues came from the selling of gas and oil to Europe.
 
Regarding the Europeans, the statistics agency Eurostat estimates that Russia exports provide roughly 25% of their demands for oil and 40% of their needs for gas.
 
The Center for Research on Energy and Clean Air (CREA) estimates that since the start of the conflict, the European Union has paid Moscow 135 billion euros for oil and gas. Has Europe finally started to lessen its reliance on Russian petroleum as a result of the EU's gradual sanctions against Moscow?
 
In order to find new markets, the Europeans started looking outside and signed agreements with Gulf and African nations. While the energy war continues, experts predict that Russia will lose its market share even if the high gas prices in Europe did not significantly hurt the Kremlin's revenues.
 
According to Gazprom, the state-owned energy firm of Russia, production has dropped by around 20% in 2022, while the percentage of exports has dropped by about 45%.
 
On another note, 25% of the world's wheat comes from Russia and Ukraine, and the prolonged conflict has caused its prices to rise, endangering the security of food supplies in many nations. 
 
Moreover, Russia and Ukraine produce fodder for poultry and livestock, which has increased the price of meat.
 
The war's economic repercussions on Europe were severe because of production losses, supply chain disruptions, and a slowdown in growth. Experts say that although Russia is currently less affected than other countries, it may become more so as the months go on, particularly if European nations manage to secure other energy sources.
 

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