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Two years after the start of the war between Russia and Ukraine, the world continues to reckon with the consequences of a conflict that has transcended territorial boundaries to affect the global economy in complex and lasting ways.
Supply chain disruption and inflation
One of the immediate consequences of the war was the significant disruption of global supply chains. Russia and Ukraine are important suppliers of natural gas, oil, wheat and other essential metals. The sanctions imposed on Russia and the damage to Ukraine’s infrastructure reduced the availability of these resources, causing prices to escalate on a global scale and fuelling inflation in many countries.
Impact on the energy sector
Europe, in particular, faced an unprecedented energy crisis, with rising natural gas and oil prices putting pressure on economies already weakened by the COVID-19 pandemic. This has accelerated the search for energy alternatives and the diversification of energy sources, but has also highlighted the vulnerability of economies dependent on a limited number of suppliers.
Socio-economic implications and post-pandemic recovery
The war further complicated the path to recovery from the economic impact of the COVID-19 pandemic. While some sectors have experienced growth due to new market requirements (e.g. the defence and renewable energy industries), others have suffered severe setbacks due to rising energy and raw material costs.
Conclusion
Two years after the start of the Russian-Ukrainian war, the world faces significant economic challenges that require a coordinated and multifaceted response. The need for security, stability and economic prosperity calls for a renewed international commitment to peace and cooperation, reminding us that the repercussions of a conflict can extend far beyond its immediate borders.
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