Who knew that a dispute between two nations could reach such an extent that it would pose a difficulty for the entire world. Dispute with impacts so huge that it has proposed a big challenge for countries to find ways to cope with this issue. Wars are never a good idea. There is no winner in wars. Furthermore, every war pushes the economy 50 years backwards.
With the increasing concerns in Russia and Ukraine matter, many countries who were already in https://youcontrol.com.ua/en/articles/stop-russia%20/ are now starting to think about their decreased sources. Companies are YouControl are actively ensuring that Russian tie-ups do not affect the business worldwide. Their business analytical system contains a dossier on each Ukrainian company and sole proprietorship.
Impacts on the global economy due to the conflict:
- Increased oil prices
Russia is ranked as the 3rd largest oil producer supplying almost ¼ of Europe and many other nations. We’ve been noticing quite a hike in the oil prices and they are predicted to stay at a higher price for some time being. Such hikes naturally impact the whole economy & make it challenging for the world to survive & thrive.
- Effect on the supply of natural gas
More than 40-50% of Europe had been looking forward to its gas supply to Russia. Germany, 55%.
Countries like India had their natural gas sources sorted out from the Middle easEastd Qatar. But with rising demand for natural gas many other nations might look forward to these Middle Eastern parts.
It is soon going to turn out as a challenge as they’ll have to either deny their service or would have to raise their oil production. Natural resources are anyways scarce, and wars, to add to that exploit such resources & make it extremely difficult for us to live peacefully.
- Deficiency of other minerals and resources
Russia is a producer of many rare minerals including palladium which is used in the generation of automobiles. Countries are soon expected to face coal and mineral shortages. Ukraine being a big producer of wheat and sunflower has resulted in a hike in their respective prices.
Countries should prepare themselves to face the deficiency of oil supply, sunflower oil, some rare minerals, aluminium, paper and many more and might need to find ways to smartly utilise the existing resources.
- Disturbed supply chain
Already trying to recover from the impacts of the pandemic, countries have now a new challenge of finding the right sources to ensure a smooth supply chain of the needed resources.
In a short term time span countries might not see this conflict affecting them a lot but in the long term the situation is definitely going the turn the other way around.
Countries like India have already started to face coal shortages which recently resulted in train booking cancellations.
Europe that had been dependent on Russia and Ukraine might need to start searching for other sources.
Global consumers need to reduce the wastage of these resources and might have to co-operate with the government in taking necessary actions for the welfare of the nation.