The seemingly never-ending conflict between Russia and Ukraine continues to escalate while simultaneously affecting global stock markets. Russia’s invasion of Ukraine has sent reverberations throughout the world economically. This conflict continues to cause issues in the trading sector, especially in the EU. Europe may be the continent affected significantly trade-wise however countries located in Central Asia have also been severely impacted, with 36 currencies in Central Asia depreciating. This war has created a Global Economic Fallout and one that seems impossible to fix. A gaping hole has been left in the global economy which has drastically affected many countries who aren’t even slightly involved. This war has seemed to negatively impact the world with neither Russia nor Ukraine benefitting from this exchange.
Europe’s struggle
Europe’s reliance on Russia for energy is now over. For decades the Europe and Russia have been reliant on one another for resources. Europe initially struck the deal to loosen the chokehold the Middle East had on them with crude oil petroleum, and natural gas reserves. However, this move has certainly not played out in Europe’s favour. According to the International Energy Agency 60% of Russia’s oil exports went to Europe as well as 74% of its dry natural gas. Many European countries were almost solely dependent on Russia for their energy supply. This has had devastating impacts starting an energy crisis for European countries.
Asia’s depreciation
The daily lives of many in Asia have been affected due to the inflation caused by the war. The rapid inflation is a cause for concern for many residents in Asia. The price of petrol in Vietnam has skyrocketed due to oil shortages and petrol hoarding. Ukraine and Russia are major wheat exporters. Whereas Ukraine is a key exporter of corn. The Philippines would be vulnerable to wheat supply shocks and Vietnam exposed to corn disruptions. But, despite that Tajikistan is the country most affected by Ukraine’s export restrictions, Food and Fertiliser Restrictions Tracker shows that Tajikistan relied on Ukraine for a mammoth 77.4% of kcal (kilocalories) in food exports. After Tajikistan the next most affected are Uzbekistan with 71.71%, then Azerbaijan and Turkmenistan with 63.17% percent kcal and 55.63% kcal separately.
Ukraine’s Ruin
Ukraine has already suffered unseen levels of damage not seen in Europe since the devastations of WW2 and it took 20 to 30 years for Europe, specifically Germany and the UK to recover from it. If this war continues the way it is going the levels of damage to come seem ominously foreboding. Ukraine will not be able to withstand much more damage or casualties before having to surrender and having to rebuild for decades.
Russia’s Downfall
The depreciation of the Ruble (Russia’s currency) has been a significant factor in Russia’s downward spiral. The Ruble has been losing value at a rapid rate. It is currently equal to £0.0087 or $0.011. Causing it to get mocked online due to its value being worth as much as a vbuck (currency in a virtual game Fortnite). Russia has lost a lot of money due to it spending lots of money to bulk up their defences and strengthen their attacks for Ukraine. The huge amounts of money Russia is spending on its military resources is leading to a loss of value in the Ruble. The value of the Ruble has been frighteningly
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