Crisis Faced By The People Due To Ukraine And Russia’s Conflict?

Russia’s huge troop positioning for the past more than a month now near the Ukraine border has augmented the geopolitical temperature with the US. The situation might result in some serious concerns in case Moscow performs any sort of military action in Ukraine. Along with the US, many other countries including Germany and France are trying hard to lower the impact of the Ukraine Crisis by convincing Russian President Vladimir Putin to pull his army back from Ukraine’s borders.

Why did Ukraine leave Russia?

Officially, Ukraine declared itself an independent country on August 24, 1991, when the communist Supreme Soviet (parliament) of Ukraine disclosed that Ukraine will not adhere to the laws created by the USSR. Rather it will follow laws of the Ukrainian SSR from then onwards.

Russia and Ukraine Conflict Summary 2022 – History of Ukraine and Russia

The main reason for the present crisis and why does Russia wants to invade Ukraine is NATO (North Atlantic Treaty Organization). NATO is a group of 30 nations consisting of the US, UK, France, and Germany.

Ukraine wants to be a part of this group of which the United States, the arch-rival of Russia, is a part. NATO, too, is open to including Ukraine by making it a member, which has irked Moscow big time.

However, Russia doesn’t want NATO to permit Ukraine to join NATO as a member as it will expand the grouping’s presence to its border.

Another big reason for opposing it is that a member country of NATO will get collective support from all the members if there is any external attack.  

As per the principle of collective defense, NATO might consider an attack against one or a few of its members as an attack against all the members. This is the principle of collective defense, which is mentioned in Article 5 of the Washington Treaty.

Thus Russia opposes NATO membership in Ukraine as it believes that in case Ukraine becomes NATO’s member, it might try to take back Crimea by military action. Russia is thus asking the West to pull NATO forces out of Eastern Europe and never allow Ukraine to be its member.

Crisis Faced By The People Due To Ukraine And Russia’s Conflict?

Due to the Russia-Ukraine crisis, Russia says a shell from Ukrainian territory damaged its border guard post. According to Russia’s FSB security service, a shell from Ukrainian territory had completely damaged a border guard post in Russia’s Rostov area. However, it has not damaged anything. This incident happened at stone throw away distance from the border between Russia & Ukraine.

How Russia-Ukraine conflict threatens to hit global markets

The Russia-Ukraine conflict is expected to hit the global world. A potential invasion of Ukraine by Russia might soon be felt across other markets, from wheat and energy prices to dollars to bonds, many things have been impacted by this conflict.

GRAINS AND WHEAT

The disturbance to the flow of grain out of the Black Sea region will have a huge impact on cost, and will also increase food inflation, especially when all countries are coping with the economic damage caused due to COVID-19. The leading exporters including Ukraine, Russia, Kazakhstan, and Romania ship grain from ports in the Black Sea which might face disruptions from any military action or sanctions. Ukraine is believed to be the leading exporter of corn in the 2021/22 season and the fourth-largest exporter of wheat.

DOLLAR BONDS & CURRENCIES

The dollar bonds of both nations including Ukraine and Russia have not performed well over the last few months as investors have limited their exposure due to increasing tensions between these countries. Also, both currencies have undergone much due to this.

Besides this, several other areas have felt the crises and given reasons why did Ukraine leave Russia and a potential escalation of tensions might be felt across global markets as well.

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