Effect of the Russia-Ukraine War on the food crisis, inflation rate, and renewable energy resources

Reported by:

Aneeqa Ahmad

Date:17-Aug-23

Table of Content

Abstract

Introduction

Impact of Russia-Ukraine War

1. Food crisis

2. Inflation rate

3. Renewable resources (oil, gas, coal)

Conclusion

This report discusses the effects of the Russia-Ukraine war on the food crisis, inflation rate, and renewable energy resources (oil, gas, and coal) globally. The findings show that the Russian and Ukraine crises had brought great chaos to the world economy and trade rate. Russia’s invasion is responsible for putting the world in such a dilemma. The governments and officials have to find alternatives to resolve issues raised by this situation.

Introduction:

Russia’s full-scale invasion in 2022 has had a drastic impact on Ukraine’s civilian life, causing human casualties and destroying civilian property and infrastructure. Russian forces violated humanitarian law by disproportionate shelling and bombing in populated areas. They also demolished health care and educational centers. Some of these attacks should be protested as war crimes. This unjustified aggression against Ukraine has triggered grave issues globally incorporating food crisis, inflammation rate, and renewable resources.

Impact of Russian-Ukraine War

1. Food Crisis

The graph showing Ukraine's export of wheat

Russia’s attack on Ukraine has led to a food crisis around the globe. Before the war, Ukraine and Russia’s combined wheat production accounted for approximately a third of global needs. These two nations are considered very important suppliers of cooking oil, fertilizers, and feed grains like corn. They are illustrious in the markets of the Middle East and Africa for their products. The effect of the war is so severe on the global food market, for Ukraine is ranked among the top agrarian exporters around the world. But when Russia invaded Ukraine, the world began to encounter fundamental food products shortage.

2. Inflation rate

Inflation rate in various countries 2022

The Russia-Ukraine war potentially had an impact on global inflation rates, especially when it disrupted supply chains, affected energy prices, and triggered financial market volatility. The war has contributed to a sharp increase in food prices worldwide. The graph shows the inflation rate analyzed in different areas in 2022. OECD analysts projected the inflation rate for each area in comparison with the previous forecast from 2021. For Lithuania, Inflation increased by 12.4 percent points. Adding to the challenge was the fact that during this period many food-producing countries banned exports of fundamental foodstuffs to preserve their supply for domestic use. For example, Indonesia and India barred the export of vegetable oil and Wheat respectively. In 2021, Ukrainian peasants sowed almost 17 million hectares of spring crops which is more than the region of Austria and Czechia together. On the contrary, they sowed 22% less in 2022. Consequently, the production and export of Ukrainian crops declined beyond expectation. Due to a shortage of food supplies, many nations depending on food-producing countries have to deal with its disastrous consequences.

3. Renewable energy sources(oil, gas, and coal)

Graph of Energy consumption amid Russia Ukraine crisis

The effects of the Russia-Ukraine war on global energy resources like oil, gas, and coal can be taken as complex and varied. The graph shows the energy price fluctuations in 2023 in comparison with 2021.

It disturbed energy supply routes and production in specific areas, leading to supply shortages and price fluctuations in the global energy markets. Due to the invasion of Ukraine, the energy market has seen substantial instability and a dramatic rise in energy prices. The EU imports 41% of its need in natural gas from Russia along with 27% of oil and 46% of coal. The Russia/Ukraine crisis proved detrimental to Europe’s energy security and affordability. They had no other choice than to act rapidly in response to such a situation. First, they diversified suppliers of gas as well as found alternatives in the form of an increase in pipeline imports from non-Russian suppliers: Azerbaijan, for instance. Second, the shift from renewable to clean energy through windmills and water would be adopted. Third, the revival of some coal power plants and the possible life extension of nuclear power plants on European territory are in demand despite their being highly costly. Russia’s attack had a drastic effect on the economy worldwide.

Conclusion:

The Russia-Ukraine war has dramatically influenced the food crisis, inflation rate, and energy resources including oil, gas, and coal around the world. It has brought great damage to the global economy and trade rate. Hence, it is not wrong to claim that Russia’s unjustifiable attack on Ukraine has given rise to instability and chaos.