2022-2023
War in Ukraine: Short-term Economic Impacts
Russia's invasion of Ukraine on February 24, 2022, and the ensuing war have had significant repercussions on the European and global economy.
These repercussions manifested through increased costs of energy raw materials, in connection with the embargo decided by European countries on Russian gas and oil imports. The price increase also affected agricultural raw materials due to the fall in Ukrainian grain production and deliveries from Ukraine and Russia.
These increases in the costs of raw materials and agricultural imports then reinforced global inflationary pressures that had been prevalent since the end of the COVID-19 crisis due to the disruption of production and global supply chains.
The war in Ukraine thus revealed the heavy dependence of the European economy on Russian gas and oil imports. In response, European countries, including France, have since sought to find alternative energy suppliers and reduce their energy consumption while promoting the development of renewable and nuclear energy for electricity production.
The Ukrainian conflict has also revealed the need for some European countries, such as France, to strengthen their strategic autonomy through increased public spending on Defense budgets.