5 Impacts of the Russo-Ukrainian War that Ruined the Global Economy

KOMPAS.com – In a month of conflict in Ukraine, global oil prices have soared, foreign companies have left Russia and Moscow is facing the specter of increasingly dire sanctions.

Reported AFP, here is the economic impact of the Russian invasion which began on February 24. A month of invasion, and further tearing apart the global economy.

Also read: Zelensky Asks Japan to Increase Sanctions Pressure on Russia

1. Commodities Soar

Oil and gas prices have soared on supply concerns as Russia is one of the world’s largest producers and exporters of fossil fuels.

Brent North Sea crude, the international benchmark, stood around $90 in February.

On March 7, it jumped to 139.13 US dollars near a 14 year high and prices remain highly volatile.

Rising prices have prompted governments around the world to take steps to ease financial hardship for consumers.

Start lower VAT in Sweden, price caps in Hungary, or discounts in France.

Also read: Zelensky slams UN before Japanese parliament: UN doesn’t work, fails to resolve conflict

Gas prices have also skyrocketed, with the European reference Dutch TTF surging to an all-time high of 345 euros on March 7.

Other commodities mass-produced in Russia have surged, including nickel and aluminum.

The supply chain of the auto industry is also facing disruptions as key parts come from Ukraine.

Also read: Belarus, Russia’s Main ally, Will it Join the Troops in Ukraine?

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