RUSSO- UKRAINE WAR

THE ECONOMIC IMPACT

 2014
Invasion of Crimea, armed
conflict in Eastern Ukraine
history
2021
More than one hundred
thousand Russian troops were in
place near the Russia-Ukraine
border
Russia’s foreign ministry called
on the United States and NATO
with a few demands that were
not met
February 2015
France, Germany, Russia, and
Ukraine attempted to kickstart
negotiations to bring an end to
the violence. Efforts to reach a
diplomatic settlement and
satisfactory resolution, however,
were largely unsuccessful
February 2022
In late February 2022, the United
States warned that Russia
intended to invade Ukraine
24th February- invasion began
2018
January- The United States
imposed new sanctions
March- The U.S. Department of
State approved the sale of anti-
tank weapons to Ukraine
October- Ukraine joined the
United States and seven other
NATO countries in a series of
large-scale air exercises in
western Ukraine
March 2022
March 2- emergency UNGA
session
 The Russian invasion has triggered sanctions and other obstacles that
have hampered critical logistics and trade route operations.
The resulting ripple effects are threatening the supply of key food
introduction
resources like wheat and raising the possibility of a global famine since
Russia and Ukraine account for about 30% of the worlds grain exports.
Simultaneously, disruption to the flow of electronics, raw materials,
and parts supplies emanating out of China and other locales has
seriously impeded global trade positions.
As a result of its war, estimates of a 30-year economic setback are
projected for Russia.
The International Monetary Fund (IMF) had pointed out earlier that
both Russia and Ukraine are major commodity producers, and
disruptions there have resulted in soaring global prices, especially that
of oil and natural gas.

main economic 01 02 03
impacts
foreign
energy & oil food & crops
investment

04 05 06
russian and
export ukranian banking
restrictions economies sector
 Longer lasting
implications on
producers and
agriculture
consumers
Reduced cereals and
markets
oilseeds export
availability from Ukraine
is pushing up
international food and
feed prices.
As the agri-food sector
is highly-energy
intensive, rising energy
and fertiliser prices are
translating into higher
production costs
ukraine

Russia’s aggression against Ukraine is mainly affecting the production and export capacity of
Ukraine. The current war is raising concerns over whether crops will be harvested. Moreover, the
war has led to the closures of ports and oilseed crushing operations, affecting exports.
Prior to Russia’s aggression, over 90% of Ukraine crop exports were channelled through ports at
the Azov and Black Seas. These ports are currently inaccessible due to the ongoing war or
Russian occupation.
In addition, some storage and processing facilities have been damaged, further delaying and
constraining agricultural exports from Ukraine.
Indirect losses to Ukrainian agriculture due to production decrease, higher production costs,
logistics disruption and lower prices for export-oriented commodities have been estimated at USD
23.3 billion as of June 2022
wheat
 Price volatility, supply shortages, security issues and economic
uncertainty have contributed to what the International Energy
energy crisis Agency (IEA) is calling “the first truly global energy crisis, with
impacts that will be felt for years to come”.
As ever, poorer countries — many still recovering from the effects of
the global pandemic — will bear the brunt of the negative
consequences of the energy crisis.
russian oil exports

Russia cut gas flows to the EU by around 80% between May and October
2022, leaving the bloc with a significant shortfall in its energy mix, and a
pressing need to find energy alternatives from other places.
While many of Russia’s former international partners have reduced or cut ties
with the country, Russia has broadly kept its oil production and exports at
close to pre-invasion levels by increasing exports elsewhere, including to
China, India and Turkey.
 Energy imports from Russia account for a sizable portion
of India's overall energy consumption, which is 80%
dependent on the international market.
India would have to deal with a significant rise in inflation
as a result of rising crude oil prices. For every increase in
the price of crude oil, there is an increase in the price of
edible oil, which in turn has a negative impact on the
economy as a whole.
india

If the global economy continues to contract and global

supply chains are further stressed, the price of electronic
commodities will soar. Indian households will feel the
effects of this significantly.
Metals, that make major part in our daily, has also major
impact by this war as most the metals are either
produced or refined in Russia or Ukraine, is also
witnessing a great price hike globally. That has resulted
in a significant drop in operating profits for the auto
industry, as well as an expected rise in prices in the
coming quarters.