Title: A Review on the Impact of Russian-Ukraine War on the Global Economy
Authors: Irikefe Omamuyovwi AFONUGHE, Daniel Mevayerore IGBINI
Volume: 8
Issue: 12
Pages: 74-84
Publication Date: 2024/12/28
Abstract:
The widespread assumption across the world is that the universal cash penalties imposed on Russia, as well as the confiscation of property and other assets owned by oligarch cronies of President Putin, will seriously harm the Russian economy and prevent any more attacks on Ukraine. This is rational thinking, but the problem has far-reaching consequences for the global economy. Thus, the goal of this research is to examine the economic impact of the 2022 Russia-Ukraine conflict on key global economies. This study employs the social contract and interest group theories to understand the origins of the crisis. According to the studied literary works, while the ramifications of this crisis have proved catastrophic to Russia's economy, the global economy is beginning to suffer the effects. Rising Prices, which has already wreaked havoc on many nations, is slowly rising as a result of huge increases in oil, natural gas, and food prices within the first few days into the crisis. Experts forecast a decline in consumption by households, higher volatility, erratic stock fluctuations, problems with supply chains, soaring power prices, reduced investment owing to risks associated with politics, and economic expansion barriers. The study used the social contract theory and interest group theory as the primary lenses for analysing its effect on the global economy. It revealed some consequences, such as food scarcity, a diminishing stock market, company liquidation, and rising commodities costs and amongst all the study recommended that it is high time for the war to come to an end with mutual assurance from both parties.