The governments have lost many lives and seen an unexpected drop in the world’s economy during the COVID-19 Pandemic. For these recovering bodies, On 20 February 2022, Russia and Ukraine war gave a massive heart stroke. The war not only witnessed human loss, but also economic loss.
Russia has got one of the largest petroleum industries in the world. Russia is the largest exporter of Natural Gas, second-largest coal reserves, and sixth-largest oil reserves. Apart from the petroleum industry, Russia is considered the largest wheat exporter in the world. On the other side of the coin, Ukraine is the second large cereal exporter after the U.S. Steel and Iron are other notable export commodity of Ukraine.
After Russia’s invasion of Ukraine left, the world witnessed a spike in crude oil, wheat, and other metal commodities prices. Crude oil prices surge to $130 per barrel as the Russia-Ukraine war continues. JPMorgan Chase & co economists estimated that oil prices may surge to $150 per barrel this quarter if war continues. Wheat prices also increased to 40% after breaking out of war. If the crude oil surges to increase the price per barrel, the transportation and logistics sector had to suffer a lot. This may lead them to charge high prices for the service, which further imposed on the cost of the overall good.
Since Russia invaded Ukraine, thousands of tankers have been diverted away from the Black Sea, while dozens more have been stranded at ports and at sea unable to unload their cargoes. Europe, the US, Scotland among others stopped importing Essentials from Russia. Leading giants Netflix, TikTok, Samsung, Visa, MasterCard, Ikea, and many other companies have withdrawn their operations in Russia stating that Russia’s invasion of Ukraine is unjustifiable.
Due to war, The projected worldwide inflation rate is to be 7.2%. Which is double the projected rate, 3%. The war not only impacted the people’s lives of Ukraine & Russia, but also impacted every person on this planet. Peace, Economic growth, Humanity cannot be achieved through violence, they can only be attained through understanding. Hope Russia understands it very soon.
Thank you!
