Russia’s invasion of Ukraine is going to have a massive fallout on Europe and the world in general. Ukraine being an energy major, oil and gas prices are going to rise exponentially across Eastern Europe and much of Asia too. There is also going to be a spike in food prices as Russia and Ukraine both account for 25% of global wheat exports. Egypt, Turkey, Africa and the Middle East already grappling with massive inflation would bear the brunt of this surge. Also political volatility, fuel spike and inflation fears would threaten investment and growth in many economies already battered by Covid. Further there are fears of a Russia- China geopolitical alignment birthing a new military bloc which would challenge the NATO hegemony and keep tensions on the boil world over. Bleak times ahead, keep your belts tightened folks.
Vinay Dwivedi, Benaulim
