How Russia's war in Ukraine rocked the global economy - dailyforextrading

How Russia's war in Ukraine rocked the global economy - dailyforextrading

In a month of conflict in Ukraine, global oil prices have soared, foreign companies have exited Russia and Moscow faces the specter of default. Here is a look at the economic fallout from Russia's February 24 invasion of its neighbour:

Oil and gas prices have surged oversupply fears as Russia is one of the world's biggest producers and exporters of fossil fuels.

Brent North Sea crude, the international benchmark, stood at around $90 in February. On March 7, it jumped to $139.13, close to a 14-year high and prices remain highly volatile.

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Prices have risen at the pump, too, prompting governments to take measures to ease the financial pain for consumers: A lower VAT in Sweden, a price cap in Hungary, or a discount in France.

Gas prices have also skyrocketed, with Europe reference Dutch TTF leaping to an all-time high at 345 euros on March 7.

The United States, Canada, and Britain have announced Russian oil bans. The European Union has avoided sanctions on Russia's energy sector as countries such as Germany rely heavily on Moscow's gas supplies.

Other commodities massively produced in Russia have soared, including nickel and aluminum. Auto industry supply chains face disruptions as key parts come from Ukraine.

UN chief Antonio Guterres has warned that the conflict could reverberate far beyond Ukraine, causing a "hurricane of hunger and a meltdown of the global food system".

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Russia and Ukraine are breadbaskets for the world, accounting together for 30 percent of global wheat exports. Prices of cereals and cooking oils have risen.

The UN's Food and Agriculture Organization says the number of undernourished people could increase by eight to 13 million people over the course of this year and next. Source: MSN



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