The Global Impact of Sanctions

Matters in Ukraine have been taking everyone’s attention for the past month. Some terrible tragedies have happened on Ukrainian soil, and the world is not sitting idly by. Shortly after the first Russian strikes on the city of Kyiv, the world took swift action to sanction a few key things. These sanctions, however, have had an effect on the rest of the world, and it could be much worse if the conflict continues. I’ll boldly assume that everyone reading this has seen a jump in fuel prices in the past few weeks. Maybe not just gas, but other everyday products may have started to increase in price near you.

You might be wondering if the United States has been hit hardest by these sanctions. There’s no exact science to see who’s struggling the most, but everyone is hurting in their own way. The global economy has been shaken in a few ways: The price of oil has gone up roughly twenty-five percent around the globe, insurance and shipping costs have also soared impacting the market outlook, Germany may be reverting back to coal-fired power plants, and coal prices have taken a hike as well. Interest rates in Russia, however, have jumped from nine and a half percent to twenty percent. Not only are there sanctions on Russian products and goods, but on nearly 1,000 Russian individuals and businesses reportedly close to the Kremlin.

Surprisingly, Russian attacks have been strongly countered by a fierce and proud Ukrainian government. The Russian army has stalled on all fronts, and with these current sanctions, they may be packing their bags empty-handed. The battle for Kyiv has been harsh and demanding for Ukrainians, but they have held their ground surprisingly well against the global superpower, Russia. Despite the largest mobilization of an army since World War II, they have been stalled on all fronts in Ukraine, shocking just about everyone in the world. Dan Cavallo at Pennridge says, “I don’t believe there will be a World War. I do think it will depend on how the rest of the war unfolds, but tensions are high.” Most are speculating an awkward ending that leaves Russia without Ukraine.

Of course, the global impact of these attacks has affected just about any consumer right now. Gas in America alone has taken big jumps and is now averaging nearly five dollars a gallon. There has been speculation on when the gas prices will go back down, but the most likely scenario is that the prices will get worse before they get better. Although America only relies on three percent of its oil from Russia we have seen an impact on gas prices. Some countries however buy most of their oil from Russia. This could be catastrophic for nations in Europe that rely heavily on Russian oil. Timothy Busch, a history teacher at Pennridge High School, had this to say about the end of the conflict in Ukraine, “Hopefully very very soon.” Here’s hoping.