Russia Ukraine War Impact on World Economy by Darshana Khandelwal

 Russia Ukraine War Impact on World Economy

by   Darshana Khandelwal   

#Prices of Energy

#Gas Supplies

#Mortgage and Loan Rates

#Transport Cost

#Edible Oil

#Supply Chain

#Food 

Recently Russia has attacked Ukraine as it did not want NATO's eastward expansion. Russia does not want Ukraine to become a member of the North Atlantic Treaty Organization but in case Ukraine becomes a member of NATO, Russia will try to take back Crimea by military action.

Due to the war going on between Russia and Ukraine it has affected the Global Economy. There is a rise in the prices of energy, gas supplies, prices of food, shortage of essential metals which has severely affected the life of the consumers also. Let us discuss how the war between the two has affected these factors and their impacts on the World Economy.

#Prices of Energy

Among all other countries, Russia is the 3rd largest producer of oil. The price of energy has been showing a boom since 2014 and has become more expensive after the war taking place between Russia and Ukraine due to which consumers are also facing difficulty to afford the increasing price of the oil and has created imbalance in their life.

#Gas Supplies

After the conflict between Russia and Ukraine it has resulted in the increase in the prices of gas too. As Russia is the largest exporter of natural gas, the Europeans get 40 percent of the gas from Russia. If the supply lines get damaged, there will be a volatility in the market and due to this the factories in Europe will tend to shut down in order to conserve the gas.

#Food Prices

Both Russia and Ukraine supply wheat which is being used in the global production of items such as beer, pasta, bread and other staples. As per the records the wheat that is being produced in Ukraine is 10% of the world’s wheat and due to the ongoing war the prices of food has increased rapidly and this will be a big problem to the consumers in purchasing even the day to day staples from the market.

#Mortgage and Loan Rates

The conflict between Russia and Ukraine has resulted in an increase in the interest rates by the banks. This means the rates of savings will fall but the loan rates would rise significantly. So, it will be difficult for the individuals who have taken loans or mortgages from the bank. The growth of the Economy is possible when there will be a low base rate and due to this the businesses will think to save more and spend less.

Darshana Khandelwal 

#Ukraine #World Economy #Russia #War #Increasing prices

 

 

 

Russia Ukraine War Impact on World Economy

by   Darshana Khandelwal   

https://bit.ly/3CvaVJR

#Prices of Energy #Gas Supplies #Mortgage and Loan Rates #Transport Cost #Edible Oil

#Supply Chain #Food