Economic Consequences and Implications of the Ukraine-Russia War

Abstract

Since the end of the Cold War, the sanctions against Russia have been the harshest and most costly imposed on a major economy. They appear to be unprecedented in terms of speed, breadth, and global coordination. The latest situation heightens the sense of danger that comes with cross-border financial and operational vulnerability. Even if future oil and gas embargoes are imposed, the economy of Russia will rest on its current export strategy, which may be tough to weaken. The important factors to take into account at the onset of the war are the opportunity cost of military investment, the humanitarian loss of the financial system, and the burden of repairing post-war damage. In this paper we review the economic impact of war, and discuss the potential implications of the Russia Ukraine war on the local and global economies. Overall, there are human costs of war along with the economic influences like building, devastation, inflation, limitation of services debt increase, and daily economic life.