Recent tensions between the Eastern European countries of Russia and Ukraine have caused significant global economic problems. 

Since Ukraine is a part of the United Nations, they have received aid from other members of the UN. Russia is part of the UN as well, but recently have felt the effects of their actions from the UN. 

The U.S. and Europe have tried to ensure that Russia feels the effects of the sanctions. They have not allowed Russian oligarchs to access funds they have stored outside of Russia, shocking the Russian people. 

Moreover, Visa and Mastercard have both suspended operations in Russia, prohibiting people from withdrawing or depositing money on Visa or Mastercards. 

Russia exports natural resources to a multitude of countries. President Biden recently announced that he will ban U.S. imports of Russian oil, which will further increase gas prices. 

“Peace is something that must be achieved. It will not take long hopefully given that everything can be handled peacefully and in proper agreement,” Miami Palmetto Senior High junior Bruno Casuso said. 

So far, this crisis has caused three types of economic repercussions: economic sanctions, commodity prices and supply chain interference.

Some sanctions imposed by the EU and United States include targeting the Bank of Russia. These sanctions will not allow the Bank of Russia to withdraw money that the EU and U.S. hold, and turn them into Euros. Russia will struggle economically with this sanction.

Because of the economic sanctions, commodities will be scarce. This means that prices for oil, gas, base metals and grains will go up since Russia is a primary exporter of these goods. With the destruction of Ukrainian infrastructure and sanctions preventing the movement of resources, the war could potentially cause the global supply chain to come to a halt. Additionally, the increases in price will lead to inflation. Some countries around the world are already feeling the effects of the increase in the price of oil. One of them being the United States. Gas prices have gone up almost a dollar every week. 

Because of Russia’s invasion of Ukraine, many countries plan on or have cut off ties with them, leading to greater supply chain issues and increasing trading tensions. 

“Peace is something that must be achieved. It will not take long hopefully given that everything can be handled peacefully and in proper agreement,” Miami Palmetto Senior High junior Bruno Casuso said.