Ukraine and Russia issue: If there is a Ukraine conflict, there will be a shortage of gas and oil will catch fire?

The world’s raw material prices are rising amid rising tensions over Ukraine. In such a situation, along with rising inflation, pressure is increasing on the governments struggling on many issues. A Bloomberg report suggests that a war over Ukraine or sanctions on Russia could push up the world’s prices of many things, including wheat, and push Europe into a major gas crisis.

Gas crisis

By far the biggest impact has been on Europe’s gas markets. Prices in this area have increased nearly five times in the past one year. In the event of a Ukrainian war, gas sent to Europe could be largely disrupted as a third of it reaches through Ukraine. The sanctions could affect trade and prevent a new pipeline, Nord Stream 2, from bringing Russian gas into Europe.

Questions on Food and Fertilizer

Ukraine and Russia dominate the trade in wheat, corn and sunflower oil. In such a situation, it is possible to increase the prices of these things in case of conflict. This increase can happen at a time when inflation is the highest in a decade. Wheat prices skyrocketed in 2014 when Russia annexed Crimea.

If there is a Ukraine conflict, there will be a shortage of gas and oil will catch fire?
If there is a Ukraine conflict, there will be a shortage of gas and oil will catch fire?

Russia is among the top three fertilizer exporting countries in the world. In such a situation, any problem in its export can increase the price of the fertilizer.

lack of metal

Russia exports a wide range of metals including aluminum, nickel, palladium and steel. US sanctions against Russal to Russian United caused turmoil in the aluminum market in 2018. So no one wants to take this risk.

oil price

The price of oil in the UK is approaching $100 a barrel. In such a situation, due to the fight between Ukraine and Russia, its price can reach $ 150 per barrel. Along with all this, countries around the world will have to change the trade route in the event of war, due to which inflation will increase further.