Zia Ruying owns a Russian supermarket in Singapore. He brought food and drink from Eastern Europe and sold them in Singapore. His business was already booming due to the Corona epidemic. Now Russia’s attack on Ukraine has created a new challenge. He said supplies to his organization had been cut off from the country since the Russian military launched an offensive in Ukraine. News from the BBC.
Zia Ruying told the BBC that Russians, Ukrainians, and Belarusians in Singapore were already aware of the crisis. So before and after the start of the war, they came to the store and bought extra daily necessities.
As a result, the stored goods ran out quickly. It is no longer possible to supply goods to meet the demand of the buyers as the import from Eastern Europe has stopped. He is planning to bring products from alternative sources.
In this case, there is another crisis. Following the invasion of Ukraine, Western nations, including the United States, have banned the operation of several Russian banks in the international money transfer system Swift. Importers are facing problems in importing goods from Eastern Europe.
Not only Singapore but also the economies of Southeast Asian countries were barely beginning to cope with Corona. Before the epidemic, world-renowned sports brands such as Nike, Adidas, and Puma moved out of China to Southeast Asia to reduce production costs. Countries in the region, including India, Malaysia, and Vietnam, received a record ৮ 16.2 trillion in foreign investment in 2019 as various companies relocated due to geopolitical tensions between the United States and China.
Southeast Asian countries import most of their essential oils from Middle Eastern and African countries. So they may not be directly affected by Western sanctions on Russia’s energy sector after the start of the war in Ukraine.
But Western sanctions on Russia have pushed up fuel prices and pushed up petrol prices in the region. The increased cost of transportation and import of goods.
“No matter where you buy fuel oil from, you have to pay the highest price in 10 years,” energy analyst Bandana Hari told the BBC. This is a challenge for all countries.
A study by The Institute for Economics and Peace, a Sydney-based international research institute in Australia, found that war-torn countries’ GDP fell by an average of 41 percent due to war. According to a study of 10 war-torn countries in 2019, a country’s GDP could be reduced by about 70 percent due to war. In 2021, the institute published a research paper titled ‘Economic Value of Peace-2021’. It shows that in that year, about 140,000 people were killed and about 40 times more people were injured in the conflict. Last year, the London-based think tank Defense and Peace Economics published a lengthy research paper entitled “The Economics Cost of Hybrid Wars: The Case of Ukraine”. Russia’s provocative war with rebels or insurgents in the Donbas region of Ukraine from 2013 to 2016 has reduced the country’s GDP by more than 15 percent. Conflicts with rebels in the Russian-backed Donetsk and Luhansk regions, on the other hand, have reduced the region’s GDP by 46 percent between 2013 and 2016. The global media is predicting a global economic crisis as this year’s Russia-Ukraine conflict has spread across the land, air, and the Black Sea across Ukraine.
Bloomberg – United States: Bloomberg, a New York-based news and economic research organization published a report on the morning of February 25, 2022, written by five researchers on the threat of war in Ukraine to the world economy. At the outset of the report, Russia’s invasion of Ukraine was feared to be a major threat before the wounds of the world economy, which had been damaged by the recent Corona epidemic, healed. It is said that this is going to be a terrible war in the heart of Europe after the Second World War. Fuel oil prices have crossed ড 100 a barrel in the heat of the war, the highest since 2014. Fuel gas prices have also risen by 72 percent across Europe. US President Joe Biden issued a new ban on February 24 aimed at barring Russian banks from trading in US dollars. Due to the Corona epidemic, the world economy is already plagued by two complex problems, namely inflation and an unstable economy. The war in Ukraine will only increase the level of this problem.
People in Europe are forced to turn on the heating system in their homes because of the snow. However, in this case, and the case of car fuel, their cost will increase a lot. As a result, they have no choice but to reduce other household expenses. The share and investment sector was almost submerged due to Corona. It will sink further because of the war. This will lead to a deficit in both human resources and self-confidence. Investors are struggling to make ends meet. Governments and central banks of different countries will face big challenges in controlling commodity prices and keeping the wheel of economic progress in motion. However, the impact of the pressure on the world economy will depend on Russia’s response to the intensity, duration, extent, and severity of the economic sanctions that the Western world is imposing on Russia. Russia is the main supplier of oil and gas to European countries. So much of Europe and the world economy now depends on Russia’s willingness to supply oil and gas from Russia to Europe and on the security of Russia’s oil and gas transmission lines from Russia to Europe via Ukraine.
Posted By
MD. Rakib