Impacts of Russia-Ukraine War on Global Economy with Special Reference to Indian Economy
Author : Jamir Uddin Ahmed
Abstract :
The relation between two countries (Russia and Ukraine) became hostile after 2014 Ukrainian revolution, which was followed by Russia’s annexation of Crimea of Ukraine and the war in Donbus, in which Russia supported the Separatist fighters of the Donetsk people’s Republic and Luhansk people’s Republic. The war has replaced more than 11 million people. Russia’s military forces have caused extensive damages to civilian infra-structure. The Kyiv School of economies estimated that as of April 2023, the direct documented damages to Ukraine’s infra-structure were 147.5 billion dollars (at replacement cost). The war has devasted Ukraine’s economy and reduced food and energy security in many countries.
War between Russia and Ukraine have exposed the vulnerabilities in the financial system. The war is a blow to the global economy causing rapid inflation and sluggish growth. The ongoing war has affected the trade routes and have disrupted supply chains globally. Western nations have unitedly condemned Russian Federation and have placed several sanctions as well as bans on Russia. These sanctions have led to an increase price of commodities which will negatively affect the recovery of Global and domestic economy affected by the severe pandemic. Russia and Ukraine make up only 2% of global economy but they make majority of many essential products. The article explores the impact of the war on the global economy with special reference to Indian economy.
Keywords :
Global Economy Separatist fighters, Indian economy, Russia, Ukraine, supply chain.
