Top 10 Global Economic Crisis due to Russian-Ukraine War
10 Impact on Global crude oil production
Russia is the world’s third-largest oil producer. They account for over a third of all crude oil output worldwide. Following Russia’s invasion on Ukraine, crude oil prices rose to near USD100/bbl and are expected to reach USD115/bbl in the face of limited global supplies.
9 Impact on Natural Gas
Russia is the world’s second-biggest natural gas producer and the world’s largest natural gas exporter. Russia was responsible for 40% of Europe’s natural gas supply. Natural gas supply was considerably decreased after the war, resulting in a rise in crude oil and natural gas prices on the global market. Germany, the world’s top consumer of Russian natural gas, has rejected proposals for an undersea pipeline to transport gas from Russia to Europe.
8 Significant increases in Cyberattacks
Russia employs cyberattacks on Ukraine as a method to damage the country’s administration and economy. Later, cyberattacks extended to other countries, including the United States. The most well-known criminal programmers are based in Russia, and the most of them are backed by the government. With the growing threat of cyberattacks, Western businesses and government agencies ensure that their systems are protected against known flaws. The National Cyber Security Centre of the United Kingdom is assisting them with their online defences in order to monitor cyberattacks and their consequences in Ukraine and throughout the world.
7 Impact on Edible oil
Ukraine is the world’s leading exporter of sunflower oil, accounting for over half of all sunflower exports. Sunflower exports were halted following the Russian incursion, and shippers will fight to replenish supplies. In India, businesses have few options other than to consider rapidly rising costs of commonly consumed edible oils. Furthermore, imports account for more than 70% of India’s crude edible oil.
6 Impact on global Stock Market
The stock market has been severely impacted by Russia’s invasion of Ukraine. Short-term market volatility is a result of the crisis. The market’s volatility may leave an effect on financial investors’ portfolios. However, it leads to a loss of investor confidence and expenditure control. Meanwhile, as a result of the Russia-Ukraine crisis, cryptocurrency prices have plummeted.
5 Impact on Global Banks
European banks, particularly those in Austria, France, and Italy, are the most vulnerable to Russia’s new endorses. According to data from the Bank for International Settlements (BIS), French and Italian banks each have unusual cases worth around $25 billion in Russian debt, while Austrian institutions have $17.5 billion. The bad news for European banks is that the cost of bringing US dollar financing up in the euro trading market has risen dramatically. Banks use this market to raise the dollars that are essential for most global exchanges, resulting in lower rates on their margins.
4 Impact on global transport
With global transportation presently disrupted as a result of the epidemic, the conflict is likely to exacerbate existing problems. Shipping and rail cargo are two routes of transportation that are likely to be affected. While rail only transports a small portion of total goods between Asia and Europe, it has had a significant impact during recent transportation disruptions and continues to grow. Sanctions on Russia are expected to have a significant impact on countries like Lithuania’s rail traffic.
3 Significant impact on Automobile Sector
The disagreement is expected to have a significant impact on the auto industry. The surge in oil prices, along with a scarcity of semiconductors and chips, as well as other rare earth metals, is likely to exacerbate the company’s problems. In addition, Ukraine is home to a number of companies that manufacture auto parts for manufacturers. Indeed, even before Putin’s troops struck Ukraine, the global economy was in a state of flux due to rising inflation, snarled supply chains, and falling stock prices. The Ukraine crisis has had a significant impact on the automotive industry.
2 Impact on Supply chain
The globe has made an unexpectedly rapid recovery from the pandemic. Organizations are scrambling to find a sufficient quantity of natural substances and pieces to make products that meet customer demands. Manufacturing plants, ports, and freight yards that are overburdened have inherent flaws, resulting in delivery delays and higher costs. Interruptions to Russian and Ukrainian businesses could delay resumption of normal operations.
1 Significant impact on food production
Russia and Ukraine are the world’s leading producers of agricultural commodities, especially wheat and corn, which are traded internationally. Ukraine produces approximately 10% of the world’s wheat and 16% of the world’s corn. They produce 30% of the world’s wheat, along with Russia. In the Middle East, Southeast Asia, and China, the majority of these products are topographically packaged. Worries about a drop in the supply of wheat from the Black Sea district have caused uncertainty in the global wheat markets as a result of the escalating conflicts in both nations. Because the Middle East and Africa rely on Ukrainian wheat and grain, the conflict between Russia and Ukraine could result in food shortages.