How is Russia's Invasion of Ukraine Impacting their Economy?

How is Russia’s invasion on Ukraine affecting their economy? 

Kaitlyn Leffler

In the past couple of days, Russia has invaded Ukraine due to the recent buildup of military on the border, causing tensions to rise in recent weeks between the two nations. Throughout this time, Russia has been experiencing declines in their economy. The economic carnages are becoming increasingly challenging to handle because of this invasion. Russia is being put under a significant amount of economic pressure due to countries like the United States attempting to take away some of their resources. 

The economic impact that is being held over Russia is huge. The Russian monetary unit hit their lowest ever level against a dollar, meaning that their economy is at a constant downfall. The Chief executive of one of Russia’s biggest electronic retailers stated that Russia was going to have to raise their prices up by about thirty percent, and possibly higher due to how much they are losing. All of this is causing Russia to have a decline in economic growth, and is not benefiting them in the slightest. 

There have been countries such as the United States, Britain, and the European Union who have been targeting Russian banks, critical technologies, and state owned corporations. The United States along with Britain and the European Union wanted to abolish the assets of Russia’s central banks. They took what Russia had been succeeding in before the war, and sabotaged it to make their economy worse. Those specific countries did this by knowing what they wanted out of them by taking away more and more of Russia’s resources. 

Countries within NATO are also tampering with Russian sanctions, specifically their energy, transportation, and economic services. It is not an instant solution, as the effects are not immediate and take time to abrupt the Russian economy. In the meantime, though, Russia has already been suffocating their economy with their surge in spending for the military. According to CNN Business, “Russia is already paying a price for its aggression. The country's stocks and currency tanked last week after Putin ordered troops into eastern Ukraine. Russia's stock market was closed Monday.

The Ruble hit record lows Monday, sliding as much as 30% against the dollar, while the Russian central bank more than doubled interest rates to 20%.”

Consequently, more and more countries are starting to become more involved with Russia’s economy, and doing what is possible to make their economy suffer. Europe has also made an attempt to reduce Russia’s capability to tap their financial markets. Russia has no way of protecting or saving their economy any time soon because of their invasion and conflicts they have going on.

Works Cited

Prince, Todd. “Russia To Pay For Putin's Ukraine Invasion With Higher Inflation, Weaker Ruble, Slower Growth.” RadioFreeEurope/RadioLiberty, Russia To Pay For Putin's Ukraine Invasion With Higher Inflation, Weaker Ruble, Slower Growth, 27 Feb. 2022, www.rferl.org/a/russian-economy-inflation-ruble-ukraine/31725302.html.

Toh, Michelle, et al. “The List of Global Sanctions on Russia for the War in Ukraine.” CNN, Cable News Network, 28 Feb. 2022, www.cnn.com/2022/02/25/business/list-global-sanctions-russia-ukraine-war-intl-hnk/index.html.