The invasion of Ukraine by the Russian military under the guise of operation demilitarization has stressed the traditional idea of shared interest encircling business could hinder arm conflict.
The Russian invasion of Ukraine had not only impacted the Western political order but had proved pivotal in trembling the global economy thereby affecting the supply chain.
Paradoxically, it’s an upheld belief that economic interest remains paramount in stabilizing world peace since the aftermath of WW2, but with the chain broken by Russia, normalcy on global trade remains on the edge of a thin line between the Western bloc and Russia.
Russia is accounted to be 3rd highest producer and exporter of oil and gas, being the highest producer in Europe, according to statistics, Europe rely much on oil and gas from Russia which amounted to her oil deposit producing 40% of oil usage in Europe, while the gas and oil of Russia are paramount to also paramount to the United State economy.
With sanctions piling up on Russia, the alternative for oil deposit has been on the lookout by the Western world as they are bent to stop depending on Russia for oil and gas, with the USA turning to Venezuela or Iran for a possible alternative to Russia.
According to a report from Opec, halting Russia’s oil in the international market will bear a negative effect on global supply, with KSA refusing to put a sanction on Moscow in order to stabilize the already crumbling international markets.
The recent price skyrocketing of oil per barrel in the global market is due to the conflicting nature in Eastern Europe, with Russia threatening to retaliate against the West, oil per barrel will probably rise to over $400. A rise in the oil basket will lead to an increment in the supply chain as the supply mode rest on oil to move.
With most producing and high tech companies relying on Russian oil and gas, it will prove fatal to their cost of production, which will affect import and export to countries of the world.
In an international transaction, Russia’s network had been cut off which will impede international transactions between Russians and major Western countries, the inability to process resources by Russians internationally, they will have to rely on the Eastern countries as another alternative to the West, the break-in continental economy will limit transactions between business companies looking up to Russia for resources to feed their economies.
In the growing midst of the sanctions, Kremlin had also reported nationalizing all foreign companies in their country, while Russian oligarchs and government officials have had their assets frozen overseas in Europe, with the balancing nature of replying to Western sanctions, most rich people will lose their assets in the warring state.
Football which had been a prosperous business has also been hit by conflicts, with sponsorship and deals lost by leagues and clubs, their flow of income will be reduced, while Gazprom Oil sponsorship with Schalke 04 has been cut off, Chelsea as a club has also been a victim of the sanctions due to their own nature, TV rights relating to Russia has been suspended by most leagues.
In agriculture, inflation had been a constant friend in the sector, Russia and Ukraine are the highest exporter of wheat, which are used in making bread and likes.
According to a report from the United Nation Food Program (UNFP) wheat from the conflicts zone amount to 40% used by the organization, while a hike in the price of bread is on the lookout, with Africa being suggested to be the most affected continent says UN.
In the technology and communication sector, debate on whether to cut off Russian satellite in space remain a bone in the marrow for the West, while tech companies like meta had been in direct attack with Moscow, with Kremlin calling for a drastic measure against Meta for inciting and allowing death threats to her leaders.
With no possible solutions on the way at present, the global recession is imminent, with the United States said to be hit by the worst recession in 40 years, Russia will also be affected in the long run if the sanctions keep piling on, other nations dependency on Russia will be majorly hit, and the Russian rubble will be reduced to its minimal, if Russia is able to achieve the feat in the use of gold for transactions or medium of exchange, the US dollar will be plunged by rockets of recession.
