On 24 February 2022, Russia’s President Vladimir Putin declared war with Ukraine. The announcement was made on Thursday from Moscow. As a result of the ongoing Russia-Ukraine crisis that has taken the face of war, the world is fearing its impact on the economy. It is expected that the effect of the Russia-Ukraine war will affect the pocket of the common man in India.
List Of Things That Will Rise If Russia-Ukraine Goes To War
Petrol and Diesel
If Russia-Ukraine goes to war then it will have a huge impact on petrol, diesel prices in India, as the country could witness a high rise. This is because oil consists of around 25 per cent of India’s total imports and India imports more than 80 per cent of its oil requirement.
LPG and Kerosene Subsidy
It is expected there will be a rise in crude prices and thus because of that, there will be an increase in the subsidy on LPG and kerosene.
Electricity
Another essential commodity that is set to be impacted adversely by the war is Electricity. The rise in energy prices will also lead to an increase in prices of electricity production, which in turn will lead to higher electricity bills for consumers.
Wheat
Both Russia and Ukraine are two of the world’s largest wheat producers and account for about a quarter of the crop’s global production. Any disruption in the global supply of the crop due to war can lead to a steep surge in food prices.
Gold
After Putin decided to deploy troops in the breakaway regions of Donetsk and Luhansk during that time gold hit its highest price. The price of gold is likely to surge more in the coming days.
Sunflower Oil
As far as India is concerned, they may have to pay more to import edible oil since Ukraine is a major producer of sunflower oil. The Russian invasion of Ukraine might not be seen as an event that has imminent consequences on the country.
Metals
The price of palladium, a metal used in automotive exhaust systems and mobile phones, has soared in recent weeks amid fears of sanctions being imposed on Russia. The country is the world’s largest exporter of palladium.
Cobalt
The Russia-Ukraine conflict could also result in rising prices of Cobalt. Russia produced 7,600 tonnes of cobalt in 2021, more than 4 percent of the world total.
Hence, 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.
