Russia’s recognition of Ukraine’s rebel-held territory has shaken the world’s economy. In addition to rising oil prices, the index has fallen in the world’s capital markets. The global food market is also in the face of supply crisis.
Oil prices rose sharply in the last seven years on Tuesday (February 22nd) after Russia announced plans to send troops to eastern Donetsk and Luhansk, separate from eastern Ukraine. Brent crude, the international benchmark for crude oil, reached 98 a barrel.
In this situation, when the war between the two countries started, the price of oil is expected to increase to a record amount. Germany has already announced the suspension of Nordstream 2, a pipeline supplying gas from Russia to Europe. Russia accounts for 40 percent of Europe’s gas demand and 25 percent of its oil. Russia is the world’s second largest oil exporter and major natural gas exporter.
The crisis in Ukraine has caused instability in the capital market and other sectors of the world economy. On Tuesday (February 23), most of the indicators of the downtrend economy. Japan’s Nikkei 225 index fell 2 percent and the Shanghai Composite index fell 1.4 percent.
Russia-Ukraine war could lead to supply crisis in world food markets. Russia, Ukraine, Kazakhstan and Romania are the major food producing countries in the world.