Global Businesses Fall Exponentially Amid Russia-Europe Tensions

Business January 5, 2023

History has taught us that conflicts can be damaging to all of the parties involved, including the victorious ones. Be it in the medieval or modern age, conflicts have served no good for humanity, and this is equally true today. Since the nature of geopolitical conflicts is disruption, it is likely to be the foremost outcome. Apart from the loss of human lives, the economy falls, and poverty becomes rampant.

Middle East Eyes / Poverty and mass disruption are the hallmarks of conflict.

In April 2022, Vladamir Putin – the president of Russia – decided to escalate tensions between Russia, Europe and Ukraine. Consequently, countries like the U.S., the U.K., Canada, and all European Union (EU) countries have ceased their businesses with Russia. It is pertinent to note here that Russia is the grand exporter of natural oil and gas. Since the fall of the Soviet Union, Russia has been in sync with all the globally leading countries. Similarly, Russia has been on the same page with the European Union.

BBC / Russian aggression in Ukraine has disastrous impacts on the whole world.

Nonetheless, Russia, under Putin’s presidency, seems to be a whole different country. It has broken all the global agreements with the world superpowers and the EU while going up against Ukraine. Consequently, this has disastrous impacts on all these countries.

Global Business Fall Exponentially

As mentioned earlier, the Russian-Ukraine tussle has impacted all countries in the world, including global businesses. Likewise, financial experts also believe that the current soaring inflation is also due to the Russia-Ukraine situation.

NPR / The world has seen a “synchronized fallout of global businesses and economy due to the Russia-Ukraine conflict,” says a report from Bloomberg Survey.

While major countries like the U.S., U.K., Canada, and other European countries have ‘ceased’ their businesses with Russia, the impact is obvious. Prices have gone up in an unprecedented way, and inflation is soaring. Thus, if you are bothered by the current soaring inflation – and anticipated recession – perhaps Russian aggression is to blame.

Furthermore, the Bloomberg report reveals that “China – who seemingly favors Russia – is also struggling with its economy.” Getting out of COVID, Chinese economists were anticipating a staggering growth in the Chinese economy. “The expectations of Chinese economists are slashed as we look at the latest data of May 2022,” says the Bloomberg report.

It is pertinent to note here that every country is equally hit by soaring inflation due to the Russia-Ukraine skirmishes. Unprecedented gas prices ($6 per gallon) in the U.S., high mortgage rates in New Zealand, and soaring inflation in Canada are some of them.