Impacts of Russia-Ukraine War on Agricultural Economy

The Russia-Ukraine war is a dispute whose impacts extend behold the borders of the two states. The impacts culminate through the roots of the basic human aspect that acts as a cornerstone to every nation's economic dynamics (Ben Hassen and El Bilali, 2022).  According to these scholars, every state's economy is built by unique products whose change in their price affects the whole economic framework. The study by Fang and Shao (2022), indicates that Russia is the biggest oil supplier in the world. This simply means that any alteration of the supply directly affects the countries that receive oil supply from this country. This paper covers the impacts of the Russia-Ukraine war more specifically, on the world's agricultural economy.

            According to Jagtap et all (2022), an increase in fuel prices directly influences the cost of other commodities. Following the war, the rate of oil importation from Russia to other countries has reduced dismally. With such a status quo, most of the countries importing oils from Russia have experienced fuel shortages. This in turn has directly affected the cost of transportation of farm inputs and output. Ozil, (2022) extrapolates that the war has destroyed oil-supplying bases and agencies thus making access to oil quite impossible for other nations. In addition, most investors who export oils from Russia find it difficult and risky to invest in such an unpromising enterprise. It is reported by Ozili, (2022) that several investors have lost their huge capital after experiencing the destruction of their goods and theft of their cargo.

The study by Lioubimtseva and Henebry, (2012) shows that Russia and Ukraine are the major producers of agricultural products. With the current trend of unrest within these countries, agricultural activities have been affected negatively. These scholars indicate that these two countries are highly dependent on by several countries to produce agricultural foodstuffs. The war has tampered with the production of agricultural foodstuffs; the world market has been left with an adequate food supply. This translates to a rapid increase in agricultural food prices.

 In summary, it is imperative to indicate that the war between Russia and Ukraine is not a mere war between two nations but a world concern. This hereby means a call for international intervention for an immediate end to the war. Failure to do this will keep the impacts worsening especially in the agricultural economy.

 

 

 

 

 

 

 

 

 

 

 

 

 

References

Ben Hassen, T., & El Bilali, H. (2022). Impacts of the Russia-Ukraine war on global food security: towards more sustainable and resilient food systems?. Foods, 11(15), 2301.

Fang, Y., & Shao, Z. (2022). The Russia-Ukraine conflict and volatility risk of commodity markets. Finance Research Letters, 50, 103264.

Jagtap, S., Trollman, H., Trollman, F., Garcia-Garcia, G., Parra-López, C., Duong, L., ... & Afy-Shararah, M. (2022). The Russia-Ukraine Conflict: Its Implications for the Global Food Supply Chains. Foods, 11(14), 2098.

Lioubimtseva, E., & Henebry, G. M. (2012). Grain production trends in Russia, Ukraine and Kazakhstan: New opportunities in an increasingly unstable world?. Frontiers of Earth Science, 6(2), 157-166.

Ozili, P. K. (2022). Global economic consequence of Russian invasion of Ukraine. Available at SSRN.