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How Russia's Invasion of Ukraine Affects The Us

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Table of contents

  1. What are the Implications of the War to International Trading and Business?
  2. Do the War Between Russia and Ukraine Will Have an Impact on the Economy of the US?
  3. Conclusion

The Russia’s Invasion of Ukraine is one of the most recent and controversial events in the world. Since February 24, 2022, these two countries have had no formal diplomatic relations and are now at war. Several places across Ukraine have been attacked, according to CNN News, after Russian President Vladimir Putin declared the commencement of a special military operation and threatened bloodshed unless Ukrainian forces lay down their arms. Each day, the situation there worsens. We could see through the news that their cities had been badly harmed as Russians intensified their attacks into their country, that families and children were struggling to save their lives, and that there were recorded deaths as a result of the war’s destruction.

Since then, the bilateral relations between these countries have gone through phases of ties, tensions, and outright hostility. Ukraine’s government in the early 1990s was characterized by aspirations for sovereignty and independence, followed by a foreign policy that balanced cooperation with the EU, Russia, and other strong polities. However, the major challenge begins in the years 2021 and 2022, when Russia’s military buildup on Ukraine’s border has heightened tensions and deteriorated bilateral relations, with the US sending a clear warning that an invasion would be faced with severe economic consequences for Russia. As an update, Putin stated that the special military operation is proceeding according to schedule and plan, and that this is their fight against neo-Nazis, proving his view that Russians and Ukrainians are one people. Meanwhile, Ukraine’s President Volodymyr Zelensky increased military aid and advocated for direct talks with Putin, claiming that this was the ‘only way to end this war.’

What are the Implications of the War to International Trading and Business?

The exchange of products and services across countries is defined as international trade and business. It enables countries to expand their markets and gain access to goods and services that would otherwise be unavailable locally. The repercussions of the war between Ukraine and Russia, however, will have a greater negative impact on trade across their national boundaries.

The psychological, economic, and financial aspects of the war between these countries will be impacted. Infrastructure damage, a drop in the working population, inflation, shortages, uncertainty, a rise in debt, and disruption to normal economic activity are all serious economic costs of war. Recovering from conflict, particularly for those who have been severely harmed, must begin with the people, who must satisfy their domestic demands under the supervision of the government, while also raising their standard of living. Their leaders will be challenged on where they would obtain the funds required to rebuild their economy. This will reduce their competitive advantage in terms of how they do business with other countries. They are not, however, the only ones who are affected. Global prices for some commodities or goods, particularly oil and petroleum, will rise, influencing every country’s imports and exports, as well as their growth and development. Furthermore, agriculture is Ukraine’s biggest global export, and as a result of the war’s bombing, global prices for these products are projected to climb. It will also pose a threat to other nations because if they do business or trade with these countries, they may become involved and have an impact on political and international relations due to the power these countries have.

War, on the other hand, can appear to be helpful in terms of creating demand, employment, innovation, and profitability for foreign businesses. Full employment, in which all available labor resources are utilized as efficiently as possible, greater economic growth, increased rate of innovation as the government invests in new technologies, and a shift in social attitudes are just a few illustrations. Ultimately, the impacts of war on international trade and business influence the entire world, and we sincerely hope that it does not spread to other nations, resulting in bad economic consequences.

Do the War Between Russia and Ukraine Will Have an Impact on the Economy of the US?

Yes, the Russian-Ukraine conflict will affect our country’s economy. As oil prices rose due to continued attacks and financial sanctions enforced by the US and Western allies, it began to spread to other countries across the world. An invasion of Ukraine might have a negative impact on global stock markets, causing basic commodity and fuel prices to rise. Despite the fact that it is unlikely to have a significant influence on Philippine trade, it will disrupt global oil supply and prices. One of the direct consequences of the Ukraine situation was an increase in pump prices of petroleum products in the country following the spike in local oil prices.

The war between Russia and Ukraine has had an impact on global supply and pricing of agricultural commodities as well such as wheat and soybeans, which are among the products imported by the Philippines from the two nations and have already increased. The year’s average inflation rate will most likely be closer to our 4.1% prediction. All of this is likely to be reflected in local prices, with the cost being passed on to local consumers, but rest certain that increases in basic commodity costs will not be felt immediately by the general population.


The current dispute between Russia and Ukraine, according to Malacañang, has economic, trade, and human resource repercussions for the Philippines and the Filipino people. Should the recent Russia-Ukraine situation escalate, the Philippine government is considering various scenarios and steps. Duterte agreed to the country’s economic team’s advice to boost the home economy, stabilize food prices, give social protection, and look into diplomatic methods to help resolve the issue. As quoted by Lacson, we must be prepared for this, especially while the pandemic is still ongoing and the economy is still recovering.

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