The Effects of the Russia - Ukraine War on Global Trade

Abstract

The Russia’s invasion of Ukraine has created a catastrophic humanitarian crisis and threatened the stability of geopolitical relations. The war has added to mounting concerns about a sharp slowdown in global growth, a rise in inflation and debt and a surge in poverty. The economic impact of conflict has rippled through various global channels, including commodity and financial markets, trade and migration links and confidence. The aim of this research is to reveal the effects of the Russia-Ukraine war on the global economy. While examining the economic impacts of the war in the research, the reports of organizations such as OECD, World Trade Organization, World Bank, UN, IMF, UNCTAD were used. According to the reports, it is possible to say that the conflict between Russia and Ukraine will affect the global economy via three main channels: financial sanctions, increase of commodity prices and supply chain disruptions.