The ongoing war between Russia and Ukraine has not only affected the economy of these
two countries but also put severe negative consequences on other countries as well. In fact,
the whole world got affected by the crisis and inflationary impact of war-torn Russia and
Ukraine. The negative impact of covid-19 has already put the world backwards. In a situation
like this, when Russian President Vladimir Putin announces that he is going to attack
Ukraine, naturally that changes a lot. The cost of living standards has been recorded to jump
higher after the sudden intrusion of Covid-19 and now when Putin is at war against Ukraine’s
President Volodymyr Zelenskyy, that puts a lot of geopolitical pressure on the global
economy and its well-being. On completion of a year-long and still-going war of Conflict and
Russia’s annexation of Ukraine, the following section would specify a few of the areas that
got impacted on a high scale due to the war scene between these two neighbours.
The three essential sectors where the crisis has been noted to have the greatest impact include
Food, Energy sector and Migration and Governmental approaches to that.

Food

The invasion of Russia on Ukrainian land creates a significant negative impact on food
prices. There is speculation that around 13.5 million tons of wheat and 16 million of maize
are stuck between the two countries, unable to move forward. The exportation route has now
been closed for over a year and sealing the border means that the trade would not be
accomplished. Without any trades, the supply for the food chain naturally gets under the
radar. Not only does the distribution of the supply chain management get impacted but
Russia’s invasion of Ukraine and rising pollution caused by war actions results in
interruptions in planting seasons and agricultural culture. The World Food Program (WFP)
organises a calculation that shows how the cost of food has increased by 40% since 2020 and
it is expected to at least increase up to 10% of prices considering day-to-day products in
Ukraine and Russia due to the war effects.

Energy sector

Before the invention of Ukraine, Europe and China were recorded to import around 60% and
20% of Russia’s crude oil as Russia has been the second largest exporter and the third largest
producer of crude oil. The sudden attack of Russia on Ukraine pushes through the barriers to
rate the price of crude oil to such an extent that the buyers are showing a lack of interest to

buy from Russia. All of the prices have gone skyrocketing. This has a severe impact on the
supply to the global chain market, all to be blamed on the war actions.

Migration and Governance Issues

Ukrainians are leaving their country out of the threat of getting slaughtered and the issue of
migration is, therefore, a serious concern that NATO and the bordering countries of Ukraine
and Russia are reckoning with. Keeping aside the pressure on energy and food prices leading
to inequality and civil unrest, the governments of these countries also are in a highly unstable
position to take on decisions on where to keep these Ukrainian refugees. The situation is quite
messed up and things look to get worse with more days passing by.

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