EFFECTS OF REGIONAL WARS ON THE GLOBAL ECONOMY: THE EXAMPLE OF THE RUSSIA-UKRAINE WAR

Russia’s comprehensive invasion of Ukraine in February 2022, combined with the strict financial sanctions imposed on Moscow, has not only had economic consequences for Russia but also affected the global economy. Inflationary pressures stemming from the Ukraine crisis are currently damaging most of the world’s economies and are being exacerbated by significant increases in the prices of oil, gas, and both industrial and agricultural goods. Consequently, this study aims to investigate the economic consequences of the 2022 conflict between Russia and Ukraine on major players in the global economy, particularly the United States and Europe, which have imposed severe financial sanctions on Russia. The research hypothesis suggests that, in light of the political and military dimensions of the conflict in Ukraine, the country’s leaders are prioritizing political rather than economic considerations in their decision-making processes regarding this crisis. This change has led to the re-entry of economic issues, previously seen as secondary during the Cold War, into the realm of primary policy concerns, resulting in the expected recessionary trends and rising global prices. The outbreak of the war has shown that the economies and markets of European countries that maintain significant economic ties with Russia and Ukraine and are more dependent on these countries for energy resources have experienced negative effects. While the conflict between Russia and Ukraine is expected to have negative effects on the global economy and financial markets, it is believed that its impact will not be significant on a global scale.