Russia's aggression in Ukraine will have an impact on the world economy

 

Russia's aggression in Ukraine will have an impact on the world economy

Russia's aggression in the face of ongoing tensions will hurt Ukraine's economy as well as the global economy. The impact of this geopolitical crisis will disrupt food grain production and supply chains. As a result, prices of food grains, fuel and metals may go up sharply.

The Russian attack on the Ukrainian border will have a direct impact on Ukraine's agricultural sector. Ukraine is one of the world's major food grain exporters. If a war situation arises with Russia, the supply of food grains in the world market will be disrupted and prices will rise.

Economists and analysts fear that Western nations, including the United States, could impose tougher sanctions on trade with Russia following the invasion of Ukraine. This will disrupt the supply of fuel in different countries and increase the prices.

Russia has 10 percent of the world's copper reserves. The country is also the second-largest producer of aluminum. The production of aluminum will be disrupted by the effects of political instability. The sanctions would make it harder for Russia to trade with the country's mining companies. Prices of aluminum, copper and nickel will go up.

Russia may cut off gas supplies to the eurozone in response to Western sanctions. Russia supplies about 30 percent of the EU's oil and 35 percent of its natural gas. This will disrupt power generation.

Russia's own economy is not safe from this geopolitical crisis. The country's currency, the ruble, has fallen 10 percent in the past three months. Inflation is rampant in the country. The world economy could be destabilized by its effects.