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Economic Impacts of a Russian Invasion of the Ukraine

Economic Impacts of a Russian Invasion of the Ukraine

By: Adeola Omole

February 19, 2022

Oil and Natural Gas

 There would be material impacts on world economies if Russia invades the Ukraine. Most notably, the Oil and Natural gas markets would be directly affected in the event of a war. Russia is the number one source of natural gas in Europe, and also a large provider of oil to European nations. If a war were to ensue, it is highly likely that the U.S. and Europe would impose sanctions on Russia, which would lead to major shocks in the price of commodities such as oil and gas.

Since Europe is highly dependent on Russian energy, it’s unlikely that oil and gas would make the list of any sanctions imposed upon Russia. Likewise, since Russia would need the revenues generated from energy sales to fund a war effort, there would likely not be a drop of shipment of energy from Russia to Europe. However, if Russia decides to strategically withhold some energy shipments to Europe,...

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