Know How Russia Ukraine Attack will impact us now?

The fight between Russia and Ukraine has taken the form of war! Never thought we would see a war-like situation at least now when the world is still fighting against Covid. But these 2 countries who were once having diplomatic relations have turned into bitter enemies. Though it’s a war between Russia and Ukraine the severe impact will trickle down the entire world. Let us understand how will this war impact us, its effects, and its implications.

Russia Ukraine War News

Today on 24th Feb 2022 our mobiles, televisions, radio stations were bombarded with the news of Russia’s attack on Ukraine. Russia’s President Vladimir Putin announce early morning its intention to attack and ordered military operations in Eastern Ukraine’s Donbas. The motive stated was not to ‘capture ‘the Eastern European country but just to ‘demilitarize’. Right after the announcement, explosions were reported in Kyiv, the capital of Ukraine. Ukraine has adopted a defensive strategy from Russia’s attack. Ukraine’s President Volodymyr Zelensky openly told that they would defend themselves and surrender will not be an option. Though he makes a plea for peace.

Impact of Russia Ukraine war on the world?

Russia Ukraine war is sure to impact countries across the globe. Common people will be impacted the most. Let us know how:

  • Crude oil prices are at all times high

Russia is the biggest exporter of crude oil. Due to this war, crude oil prices have spiked to $105 per barrel. This has been the highest price per barrel since 2014. The global market cannot afford to bear the crude oil scarcity situation.

  • Gold prices are at all times high

The price of gold spiked to $1940 per ounce. In Indian rupees, it is Rs 52,500/- per 10 grams. Russia is the world’s largest producer of gold metal. With this war situation, forecasted disruption in gold supply led to inflated prices.

  • Unpredictability

With the war in mind, things become blurry. Everything be it stock market, business, import or exports, political situations will become unpredictable with a huge element of uncertainty. This will impact the investors, businessmen, employees, companies, Governments to a great extent.

  • Economic & Political instability

War amongst 2 countries is not an isolated affair. It does impact everyone on earth. Even though both countries do not want interference, the trickle-down impacts will affect us. Thus, making the economy unstable, affecting GDP, Net Income, and everything. Political conditions will change, as after all it is a power game.

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Impact of Russia Ukraine war on India?

India has maintained friendly relations with Russia. A couple of hours after Russia’s Ukraine attack, Ukraine pleaded with India to intervene and ask Russia to maintain peace. However, India has maintained a neutral approach in this matter. In this war situation, there is a lot to lose and no one wins anything except for political power. India will not be an exception to the rule, it will be impacted in various possible ways listed down:

  • Stock market crash

The Indian stock market opened with a huge gap down. NIFTY, SENSEX bleeds, all the indices were red.

NIFTY – It opened at 16,549, closed at 16,248. It went down by 815 points, down by 4.78%.

SENSEX – It opened at 55418, closed at 55,530. It went down by 2702, down by 4.72%.

Below are the sector indices and how they bled today

Index LTP % Change
Bank Nifty 35,228.10 2,163.95

(-5.79%)

Nifty Auto 10,609.80 -708.90

(-6.26%)

Nifty Energy 22,928.10 -1,236.65

(-5.12%)

Nifty Financial

Services

16,531.55 -897.20

(-5.15%)

Nifty FMCG 34,735.15 -1,197.95

(-3.33%)

Nifty IT 32,547.90 -1,566.40

(-4.59%)

Nifty Media 1,907.60 -142.50

(-6.95%)

Nifty Metal 5,313.65 -295.25

(-5.26%)

Nifty Pharma 12,500.10 -476.20

(-3.67%)

Nifty PSU Bank 2,544.7 -229.20

(-8.26%)

Nifty Realty 411.75 -31.80

(-7.17%)

It was the huge stock market crash of 2022 till now. Investors lost a lot of money. The bulls tried to lift up the market in the beginning, but due to the severe intensity of the war situation, as the war news spread, the bears took over the market. Finally, the bears were able to drag the market down.

The global stock market also crashed however the severity was felt more in the Indian stock market compared to others. Below is how the Global stock market behaved across the world:

  1. Dow Jones – down by 1.38%
  2. S&P 500 – down by 1.7%
  3. Nasdaq – down by 1.61%
  4. Russell – down by 1.79%
  5. NYSE – down by 1.35%
  • Indian students stuck in Ukraine

Indian students residing in Ukraine, more than 20,000 in numbers are stuck there because of the war situation. Indian prime minister Narendra Modi is trying to find out ways to evacuate them as soon as possible. Indian helplines are opened to contact people residing in Ukraine, and all efforts are being made to ensure safe evacuation.

  • India’s imports and export from Russia

India is dependent upon Russia for various imports. To start with India imported 43,400 bpd. of crude oil comprising 1% of the requirement. In 2021, India’s thermal coal import from Russia was 1.3%. It exported 2.4% of pharmaceuticals to Russia. This interdependency might be impacted due to the war situation. India accounts for 0.2% of Russia’s natural gas export. Gold prices spiked to Rs52,500/- per 10 grams, the highest in 2022.

Russia Ukraine

Reason for Russia’s attack on Ukraine?

Russia has good relations with Ukraine but things changed when Russia suspected Ukraine‘s intention to join NATO. Let us understand more about what is NATO and why is Russia so much afraid of Ukraine joining NATO?

NATO – NATO stands for North Atlantic Treaty Organization, also called the North Atlantic Alliance. It has twenty-nine members, mainly in Europe and North America. It is an intergovernmental military alliance based on the North Atlantic Treaty which was signed on 4 April 1949. In case of an attack by an external member, this group of countries will mutually help each other to respond defensively. Obviously, with so many countries in the mutual alliance, they will become more powerful than any other country.

Thus, there is a deep-rooted fear in Russia, that if Ukraine joins NATO, then it is easier for the group to invade Russia’s borders. It is possible that Ukraine may attempt to take back Crimea through the support of NATO. Basically, Russia wants the west to keep Ukraine out of NATO. Besides after the Soviet Union dissolved, Russia already lost control over 14 republics including Ukraine. The hunger for power plays a role here.

Just to wrap it up, the whole war was planned for months by Russia. It was just waiting for the right time to attack and compel Ukraine to surrender. The intensity of the attack was kept high so that there is no time left for other countries to intervene or Ukraine to get help. Thus, the high intense attack was meant to make Ukraine surrender, as both the countries know that Russia is way bigger than Ukraine in terms of army, weapons, troops, population, strength, and everything else. Russia is a shark, it can easily eat away a small fish like Ukraine. Let us see where this war goes? It reminds us of a popular dialogue from the very popular movie Pushpa, where Russia orders “ Ukraine jhuk ja” but Ukraine in return “ Main jhukega nahi”

FunFact:

This phase is temporary, the recovery of stock markets will take time, but it will recover will a bounce.

Let us know your thoughts on the Russia Ukraine attack?

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