- Russia-Ukraine crisis is worsening day-by-day with US saying the invasion has already begun
- Sanctions imposed against Russia will impact world economics, especially oil, gas prices
- Not only European nations, but other countries too will have to bear the brunt if crisis continues
Russia-Ukraine Crisis Latest News: The United States, Germany, UK have already imposed new sanctions against Russia after its unilateral move to recongnise rebel regions in Ukraine, and invasion threat, which Biden yesterday said has already begun. Looking at the current geopolitical situation between Russia, Ukraine, Europe, and the West, if diplomacy fails, and war happens, then the world is going to face serious repercussions, that could hit some nations economically, especially those who are largely dependent on their oil and natural gas needs.
Putin has said Moscow is ready for a diplomatic solution but added that country's interests were non-negotiable. West, Europe has already imposed sanctions, however, said there is still time for diplomacy. Ukraine is about to impose a state of emergency to deal with the crisis amid Russian invasion concerns.
Meanwhile, there are many European countries that are largely dependent on Russia for their natural gas needs.
European nations including Britain, Spain, Belgium, France, Luxembourg, Netherlands, Greece, Turkey, are somewhat dependent on Russia, but EU-27, Lithuania, Italy, Germany, Poland, Hungary, Finland (almost 100%), Czech Republic (100%) are largely dependent on Moscow for gas imports. Therefore, as long as this crisis continues, these nations may face a tough time for their gas needs, with prices going for a toss for sure.
One direct impact of the current Russia-Ukraine crisis is that it will raise oil and gas prices, which is already at a 7-year high at present, and impact the value of the Indian rupee, therefore, if our value depreciates, then all imports are going to get costly. Here's a list of commodities that may get costly.
Petrol and diesel
Petrol and diesel are going to be the first items, essential ones, whose prices will be impacted due to the unstable situation between the West, Russia, and Ukraine.
Essentials, luxury items to get costly
Essential products, luxury items such as mobile phones, accessories, laptops, TV may get costly. Though India is one of the biggest mobile phone manufacturers, it fulfills its raw material needs from different nations.
Foreign education to get costly
Foreign education will also get costly because if the rupee depreciates, then it will impact day-to-day spending.
If the current crisis leads to demand-supply of grains from the black sea region, analysts fear that it will lead to food inflation.
Exporters will benefit, importers will suffer
The export sector may get relief from the weakness of the rupee, especially for IT companies. This will increase their earnings. Similarly, exporters will benefit while importers will suffer.