Russia’s war on Ukraine has been catastrophic to the political and social climates in both countries. Innocent citizens are in danger on both sides of the war, tragically being put in jeopardy over a geographic dispute. In addition to the loss of human lives, the war has dramatically affected the economy in Ukraine, Russia, and even the U.S., creating issues that could be long-lasting.
Russia has received serious economic setbacks put in place in hope of stopping President Putin. The U.S. has frozen the assets of the Russian central bank in Western jurisdictions and placed high sanctions on imports from Russia.
These actions negatively affect the innocent citizens in Russia. The U.S. freezing assets has caused long lines of Russians attempting to get cash out of ATMs because they cannot access foreign bank accounts.
Furthermore, Russia’s currency, the Ruble, has lost 29% of its value. Russia’s central bank has been working to decrease inflation, yet it has proved to be a difficult task as sanctions continue to be placed on Russia. According to Peter Rutland, a journalist for The Conversation, the new sanctions severely impact the lives of Russian citizens, as 75% of Russians spend around half their income on food.
As the war is in Ukraine, the country has been economically damaged the most directly. Seaports and airports are closed or damaged, along with roads and bridges. These damages will prove to be very expensive to fix in the future, and the recovery costs of such a war will be detrimental to the Ukrainian economy.
Being at a militaristic disadvantage against Russia, Ukraine has put all resources into upholding the army they do have, along with money to buy more supplies. According to Kristalina Georgieva, managing director of the IMF (International Monetary Fund) board, Ukraine requested emergency financing of $1.4 billion.
Furthermore, the citizens in Ukraine are fearful for their lives, and any hope of economic relief is the least addressed issue at this point in the war. While working to regain peace, Ukrainians need all the economic help they can get. Please donate to UNICEF to contribute to protecting the children of Ukraine.