The Russo-Ukrainian War has had a significant impact on the global economy, affecting various sectors around the world. This conflict is not only a geopolitical issue, but also damages supply chains, affects energy markets, and causes inflation to spike in various countries. The energy sector most affected is the oil and gas market. Russia is one of the world’s largest producers of oil and gas. When the conflict began, many countries, especially in Europe, sought to reduce their dependence on Russian energy. This caused global energy prices to increase dramatically. Providing natural gas is a pressing issue, with countries such as Germany looking for alternatives, including renewable energy and supplies from other countries such as the US and Qatar. In the agricultural sector, Ukraine is known as the “silo of the world” thanks to its large production of wheat and corn. This war destroyed agricultural fields and disrupted exports, causing food shortages in many countries, especially in Africa and the Middle East. Food prices have soared, affecting people’s purchasing power and increasing the burden of inflation in food importing countries. Inflation is also a major concern in developed and developing countries. Rising energy and food prices contribute to high inflation, forcing central banks around the world to raise interest rates. These policies aim to curb inflation, but can increase borrowing costs and slow economic growth. The impact of the war was also felt in the financial sector. Geopolitical uncertainty results in volatility in global stock markets. Investors tend to look for safer assets compared to risky commodities. This causes large fluctuations in stock exchanges and currencies, especially in countries directly involved in the conflict. Infrastructure development is also hampered due to priority allocation of funds for security and military needs. Countries that depend on foreign investment experience a decline in capital flows. This economic stress affects people’s employment opportunities and income. Countries that have strong trade relations with Russia and Ukraine, including the CIS (Commonwealth of Independent States) and European countries, feel a significant impact. The interrupted trade affected various industrial sectors, from automotive to electronics, which depend on imported raw materials. On the positive side, this war has accelerated the transition to renewable energy in many countries. Many governments are starting to focus on reducing dependence on fossil fuels, accelerating the development of more sustainable alternative energy sources. Apart from that, this moment is also an opportunity for other producing countries to increase their exports, especially in terms of energy and food. For example, the United States and other natural gas producing countries are seeking to fill the void left by Russia. From a long-term perspective, the economic impact of the Russo-Ukrainian war could drive structural changes in the global economic system. Deeper integration in renewable energy and food trade is becoming increasingly important to maintain the stability and sustainability of the world economy.
