ABSTRACT
This study examines the effects of the Russia-Ukraine war on the world economy. Ukraine was attacked by Russia on February 24, 2022. It was noted that the day of the invasion saw a sharp decline in stock values. The COVID-19 outbreak and Russia’s invasion of Ukraine both contributed significantly to the global rise in food and crude oil prices. The cost of dairy and oils significantly increased following the invasion, which contributed to the increase in the international food price index. Following the invasion, there was an increase in inflation in both the nations that imposed harsh sanctions on Russia and the countries that were not directly involved in the conflict. This was seen in both Russia and Ukraine. Overall, both in the combatant and noncombatant countries, the invasion caused a steady increase in inflation. Even though Turkey and Israel mediated the settlement of the war between Russia and Ukraine, the crisis’s economic effects persisted throughout most of Europe and even beyond.
Keywords: War, Ukraine, Russia, Conflict, sanction, SWIFT, invasion, economic consequence, NATO, Europe, inflation, oil price.
