Russian-Ukraine War
For some time now the Russian army has started its expected attack on Ukraine.
The Russian president has accused the US and its allies of ignoring Russia’s demand. Russia sought to prevent Ukraine from joining the North Atlantic Treaty Organization (NATO) and accept security guarantees.
Reasons behind Russian attack
- Russia had sought a legally binding commitment from Western countries. Russia had demanded that NATO would not expand its membership to the borders of Eastern Europe, that is, Russia.
- Ethnic division: The Donetsk and Luhansk regions of eastern Ukraine are dominated by pro-Russian separatists.
- Ukraine’s inclination towards the West is seen as a major blow to Russia’s international reputation.
- Ukraine accounts for a third of Russia’s gas supply to the European Union.
Effect of Russian Attack:
General Effects:
- There will be a security crisis in Europe and the adverse humanitarian effects of the war will also come to the fore.
- Crude oil prices are likely to exceed $100 per barrel in the coming days.
- Russia tops global wheat exports, while Ukraine is the fourth largest exporter of wheat. Thus this attack will create instability in the food prices in the world.
Impact on India:
- Crude oil prices will increase by 10%. This will increase India’s current account deficit to $15 billion.
- Edible oil prices will rise as Ukraine alone accounts for 70% of India’s sunflower oil thay.
- Russia is the largest arms supplier to India. Thus economic sanctions on Russia will have an impact on India’s defense imports.
Source – The Hindu
