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Highlights
- Russia will begin military operations in Eastern Ukraine, announced President Putin today
- Europe and West would bear the brunt of Putin’s move as supplies from Russia and Ukraine might get impacted.
- Russia-Ukraine crisis can potentially add on to Europe’s existing supply crisis and inflation.
Russian President Vladimir Putin today (February 24) announced that Russia will begin military operations in Ukraine. The declaration means a big failure for the US and its European allies, who have been holding hectic diplomatic talks to avoid this confrontation which will impact the whole globe.
Putin appeared on television shortly before 6 am (03:00 GMT) and said, "I have made the decision of a military action".
"Everything is evident; the US does not desire to deal with Russia... so what do we do next?" Putin said.
As Russia decides to attack launch military operations in Ukraine, more than just Ukraine’s sovereignty is at stake. The world relies on both Russia and Ukraine for oil, gas, commodities like nickel, palladium used in batteries and even for food supplies. The attack by Russia on Ukraine would impact supply chains and even inflate prices of the above mentioned commodities
How will Russia-Ukraine tensions impact supplies to the West?
Russia is amongst the top exporters of oil and gas globally. Both Russia and Ukraine are also leading suppliers of battery metals like nickel and copper alongside iron. Other than this important materials like palladium, platinum and other chemicals are also exported by both the nations. While Ukraine is often called the ‘breadbasket of Europe,’ Russia is also the world’s largest wheat exporter.
It is obvious that now both countries will focus all resources on war and cut on economic activity. It is feared that attack by Russian troops would spike prices of energy and food. Crude oil prices are already up and prices of key commodities are also increasing. A price hike in wheat, corn, barley and other agricultural produced exported by both nations is also expected.
Why is Russia adamant on invading Ukraine?
As reported, Russia has already begun its military operations in Ukraine’s capital Kyiv and NATO chief Stoltenberg has condemned the ‘reckless and unprovoked attack’. However, Putin is just calling it a response to the threats coming from Ukraine. He has even warned other countries to not attempt any interference with the Russian action as it would lead to ‘consequences they have never seen.’
The invasion is part of Russia’s broader strategy to bring back the prior Soviet Union, which had collapsed more than 30 years ago. Russia is thinking of unifying the former Soviet nations on whom the US and Europe rely heavily for rich energy reserves and food.
Interesting Read- Russia declares war on Ukraine: How Biden & other world leaders are reacting
Europe and US to face the heat of Russia-Ukraine crisis
Europe is already under pressure of global logistical bottlenecks due to COVID-19 pandemic and the conflict between Russia and Ukraine is going to worsen the crisis. Germany is hurting already due to its heavy reliance on Russian natural gas and other Ukrainian exports. Sanctions from the US and other European nations on Russia are also likely to worsen supplies of necessary items from Russia.
For More read-What does Russia-Ukraine conflict mean for world economy?
