THE ECONOMIC AND POLITICAL CONSEQUENCES OF THE RUSSIAN-UKRAINIAN WAR

Abstract

The war between Russia and Ukraine had far-reaching consequences, particularly in the realms of politics and economics, on a worldwide scale. It caused prices to skyrocket in the financial sector, particularly in the energy markets. Military buildups on the Russian-Ukrainian border have exacerbated tensions, leading to increased costs. Before the military operation broke out, Russia cut off European gas supplies. In response, the Western bloc imposed severe economic sanctions on Russia, affecting most of its industries; it is crucial for European countries and hurt the world due to high inflation rates. The high prices and higher demand result from the low supply and associated lack of risk. One significant question that arises from studying the current state of the global economy is whether or not these high inflation rates will be a permanent problem. Quick economic remedies, including eliminating taxes and fees on production inputs and local industries, along with assistance for these sectors and the agricultural and commercial ones, are the key to answering this question. Because the issue of high inflation rates most impacts developing nations, these suggestions work better there. Sanctions against Russia have an economic component in the realm of politics. But politics is at the heart of it all, as any action that swerves the economic wheel has political underpinnings. Some choices that cause problems in international politics may be reversed due to political pressures caused by worsening relations with countries. To illustrate this point, consider the following table, which details the sanctions several nations have levied against Russia.