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Predicting the Post-War Russian Economy
±èÁö¼ö °­³²Æ÷½ºÆ® Çлý±âÀÚ | ½ÂÀÎ 2022.05.08 19:52

The world has been in a state of political upheaval since Russia invaded Ukraine on February 24, 2022, strained by the abrupt start of the conflict. At least 46 thousand people have died, 12 thousand have been injured, and 13 million people have been displaced. A total of 141 countries have condemned the conflict, with 43 of them placing sanctions on Russia in reaction to this horrific tragedy.

The political ramifications of the Ukraine War Crisis are undeniable. After the conflict, Russia will be a pariah in the international community for at least a decade. What about its economics, then? Although no projections can be made with certainty, several predictions about the postwar Russian economy appear to be very likely.

For one thing, owing to the fear of a new confrontation, Western corporations will not invest in Russian enterprises or projects. Russia's oil sector would crumble without Western technical investment, as the country's knowledge is insufficient to meet the demands of high-quality oil production. After the United States and Saudi Arabia, Russia is the world's largest exporter of oil and petroleum products and the world's third-largest oil production. However, if it loses easy access to the oil fields from which it previously pumped oil, the greatest options for oil supply are in tough areas like Siberia and shale reserves. This will certainly result in a drop in oil output and a loss of economic strength for the sector.

Furthermore, international providers will lose market confidence and dependence, causing local enterprises to suffer considerable increases in manufacturing costs and decreased product variability. This limits numerous prospects for economic growth, and the economy will suffer as a result.

 

 

 

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