The Ukrainian-Russian War in Economics

In the Ukrainian-Russian War, many people will also use history as the reason for the war. If you think about it from the perspective of today's economy, what will you learn? I will not analyze it here, because the war has not ended so far, and the negotiation between the representatives of Ukraine and Russia has only been conducted once, but I would like to add some ideas:

1. Eastern Ukraine is the two regions that now claim independence: Donetsk and Luhansk. In fact, Russians have immigrated here as early as the Soviet Union, so they have accumulated some pro-Russian forces. During this period, the civil war has been fought on and off for nearly 10 years.

2. Ukraine is the poorest country in Europe.

3. The Ukrainian-Russian war will cause 400,000 refugees to flee.

4. The U.S. Senate has passed a bill to raise the debt ceiling by $2.5 trillion, a move that would extend the U.S. government’s borrowing authority until early 2023.

5. The dollar is pegged to oil prices.

6. Russia invaded Ukraine, and Russia was subject to economic sanctions by other countries. In addition to banning the sale of Russian-made vodka, some countries also banned the import of natural gas and crude oil produced by them.

7. After Russia was sanctioned by economic sanctions, the European Central Bank said today that the European subsidiary of Sberbank is facing bankruptcy. The ruble fell by 30%, and there were crowds of people withdrawing cash at the door of the bank.

8. Russia and Ukraine account for 25% of Sri Lanka’s tourism revenue. Russia is also the second largest buyer of Sri Lankan tea. As a result, because of Russia’s invasion of Ukraine, tourists from the two countries freeze and tea exports are blocked. Coupled with the debt quagmire of China's Belt and Road Initiative, Sri Lanka has a capital demand of up to US$5.7 billion (about NT$159.6 billion) this year. If there is no financial assistance, it may face the risk of default. Sri Lanka is in bankruptcy.

From the above ideas, you will find that a war between two countries is not only a pun between the two countries, but the impact can reach the whole world.