The Impact of Russia’s Invasion of Ukraine on the Global Economy

Abstract

The impact of the Russia-Ukraine conflict on the European economy is multi-faceted and multi-disciplinary, with energy and the SWIFT settlement system being the most significant ones. Russia is a major global energy supplier, and the Russia-Ukraine conflict has directly triggered global concerns about energy supply, resulting in significant increases in oil and gas prices, with European countries, which are particularly dependent on Russian energy, bearing the brunt, and Europe's own economy being severely impacted. During this conflict, for the first time, the United States and European countries actually used SWIFT sanctions against Russia, completely isolating Russia from the international financial system and bringing about a profound impact on the global economic and financial landscape.