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Economic effects of the Ukraine, Russia Conflict

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Economic effects of the Ukraine, Russia Conflict

The ban on Russian exports and Russians’ retaliatory ban on imports, including its refusal to

allow foreign shipments to pass through its waterways and airspace during the conflict, will

create scarcity increasing the price of imported goods (Kholodilin, & Netšunajev, 2019). The

sanctions have a significant economic impact on the Russian economy. In 2022, the Russian

GDP is expected to shrink by -12.5% to -16.5% (Khudaykulova, Yuanqiong, & Khudaykulov,

2022).

Russia is the world’s second-largest oil producer hence the war will likely lead to

energy supply shockwaves and a continuous increase in energy prices (Bluszcz, et al. 2019).

Most third-world nations will incur a heavy cost for energy imports leading to a rise in the

local pump price of fuel, an increase in food prices, and a general rise in goods while income

levels remain the same (Ozili, 2022).

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References

Bluszcz, J., & Valente, M. (2019). The war in Europe: Economic costs of the Ukrainian conflict.

Kholodilin, K. A., & Netšunajev, A. (2019). Crimea and punishment: the impact of sanctions on

Russian economy and economies of the euro area. Baltic Journal of Economics, 19(1),

39-51.

Khudaykulova, M., Yuanqiong, H., & Khudaykulov, A. (2022). Economic Consequences

and Implications of the Ukraine-Russia War. International Journal of Management

Science and Business Administration, 8(4), 44-52.

Khudaykulova, M., Yuanqiong, H., & Khudaykulov, A. (2022). Economic consequences and

implications of the Ukraine-russia war. International Journal of Management Science and

Business Administration, 8(4), 44-52.

Ozili, P., 2022. Global Economic Consequence of Russian Invasion of Ukraine. [online] SSRN.

Available at: <https://papers.ssrn.com/sol3/p apers.cfm?abstract_id=4064770> [Accessed

1 August 2022].