Economic Consequences of the Russia–Ukraine Crisis for India

Abstract

War, a word that brings humanity to its knees and condemns every humanitarian law, enacted by any great organisation with a diverse range of viewpoints in order to promote harmony among people, to the death bed by violating each law that stood in the way of the ultimate goal of victory in the war. The on- going crisis in Ukraine will have ramifications not only for the countries involved in the conflict but also for the rest of the world, with Asian countries bearing the brunt of the consequences. Every war in this modern world is accompanied by certain sanctions, and Russia has been subjected to these sanctions. However, it is unclear whether these sanctions have had a significant impact on Russia or whether they are simply a step to reduce the heat that has been generated in the political environment. On February 24, 2022, Russian President Vladimir Putin declared war against the United States at a time that corresponded to Indian Standard Time (IST). This resulted in widespread tensions throughout the world, with all of the world's most important authorities taken by surprise by the news. Because of this, various stock market indices have fallen precipitously, with the Russian index plummeting by nearly 50%. As the day came to a close, major European Union countries announced their intention to impose sanctions on Russia, which would have a devastating effect on the Russian economy. Following that, the United States imposed a number of mild sanctions in the hope that Russia would refrain from invading Ukraine. With no success, the United States began to tighten the sanctions. Russia is the world's third-largest supplier of crude oil, and nearly one-third of the world's total energy supply comes from Russia, which is routed through Ukraine. Aside from that, Russia is responsible for nearly 90 per cent of the world's total neon gas supplies, which are used in the manufacturing of semiconductor chips. The international market for major metals supplies is also dominated by Russian monopolies in a variety of sectors, as well as a large share of the domestic market. As a result, tightening such sanctions will cause disruptions in the global supply.