Impact of war on the

ECONOMY OF UKRAIN
(MICROECOMICS)
Presented by Kanak Verma
and Aditi Mishra
 INTRODUCTION
• Ukraine and Russia both were once part of the USSR . These countries
share a long history. Both the countries have very similar cultures and
traits which can be seen by their people’s way of living. But in the recent
times conflict between these two have been a major topic of discussion.
Ukraine being an emerging ,lower middle income economy suffered a
major setback during the war. The World Bank in conjunction with
Ukraine government, the European Commission and the UN has put the
cost of recovery and reconstruction at $411bn after a year of war.
 PURPOSE OF RESEARCH
• The purpose of our research is to gather knowledge about the economic
impact of Russia-Ukraine war on Ukraine and the global economy and to
explore several aspects of it. We wanted to discover more ways of solving
these issues and to spread the awareness about the same.
 SUB-TOPICS
• OVERVIEW OF WAR
• ECONOMY OF UKRAIN BEFORE WAR
• IMPACT OF WAR ON UKRAIN
• IMPACT ON WORLD
 OVERVIEW OF WAR
1991-UKRAIN 2017-UKRAIN
MINSK
BECAME DECIDED TO
AGREEMENT
INDEPENDENT JOIN NATO

LOHANSK AND
BUDAPEST ANNEXATION DONETSK
MEMORANDUM OF CRIMEA DECLARED
INDEPENDENT

VIKTOR
2014-
YANUKOVYCH
YANUKOVYCH FULL INVASION
BECAME
FLED TO RUSSIA
PRESIDENT
BEFORE WAR
2008-GLOBAL
1990s-
HYPERINFLATION FINANCIAL
CRISES

2014-ANNEXATION 2020-COVID-19
OF CRIMEA PANDEMIC
 IMPACT ON UKRAIN

Biggest fall in Inflation Unemploymen Refugees

GDP t
UKRAIN –THE BREAD
BASKET OF EUROPE
Largest producer and 4th largest producer of
exporter of BARLEY(3rd largest
SUNFLOWER exporter)
OIL(4.4tons)
WAR
UKRAIN

6th largest producer in

7th largest producer of CORN(6th largest
WHEAT. exporter) and
RAPESEED
 ANALYSIS

HIGH
VOLATILITY
IN OIL AND
GAS PRICES

SLOWER
IMPACT ON STOCK
MARKETS
GROWTH WORLD RATTLED

FIRMS FLEE
 SUGGESTIONS
• Ukraine policy makers should emphasize on labor productivity growth
and use the aftermath of war as a chance to modernize the economy and
state apparatus including implementing low carbon production ,improving
the energy intensity of the economy and using advances in information
and technologies and fintech to improve government services
• Digital solutions can also reduce corruption which has always been a great
problem in Ukraine.
 CONCLUSION
• Hence a war is never restricted between the boundaries of the belligerents. Its
effects reaches the entire world.
• For ex-Egypt who imports 80% of the wheat from Russia and Ukraine will
be greatly affected. Countries like Brazil ,Mexico ,Chile , Columbia and Peru
who already face 8% average annual inflation have to battle further hike in
price due to war etc.
• Above were just few examples of how war impacts other economies as a whole.
The trauma and repercussions of war that common people face is unimaginable.
• Even the people and economy of the oppressor also suffers . Hence a war is
dangerous for both the oppressor and the oppressed.
 REFERENCES
• https://en.wikipedia.org/wiki/Economy_of_Ukraine
• https://www.imf.org/en/Publications/fandd/issues/2022/03/the-long-lastin
g-economic-shock-of-war#:~:text=But%20the%20war%20also%20greatly
,deglobalization%2C%20and%20worsening%20environmental%20degrad
ation
.
• https://www.investopedia.com/terms/w/war-economy.asp
• https://
www.imf.org/en/Blogs/Articles/2022/03/15/blog-how-war-in-ukraine-is-re
verberating-across-worlds-regions-031522
THANK YOU