VIDEO: Ukraine and the Economy – Ukraine Conflict: What Does it Mean For the U.S.?

gas-flame-400

In this USA Today video, some of the potential economic repercussions of unfolding events in Ukraine are examined.

Some relevant factors include Ukraine being a crossroads and energy hub between Russia and Europe, Ukraine’s status as a corn and wheat exporter, Ukrainian national debt, the ripple effects of sanctions between major global economies and the impact on oil and gasoline prices.

  1. Ukraine is an important energy hub between Russia and Europe, including with respect to energy infrastructure like natural gas pipelines; in addition to the fact that the supplies themselves are put to use by Europe, disruption in energy supplies also could impact energy prices
  2. Any sanctions between what are two top-10 global economies could have ripple effects
  3. Ukraine is a major wheat and corn exporter, disruptions of which could impact global prices; prices could even rise just based upon fears of disruption
  4. Ukraine’s government is in debt, already owing $13 billion this year
  5. Ukrainian already is causing oil prices to increase, along with gasoline prices “at the pump,” apparently given to the interconnectedness of global petroleum prices [and presumably Russia's status as a major oil producer]

Commonwealth of Independent States, European States, adapted from CIA image through Library of Congress

 


Comments are closed.