Russian-Ukrainian War and its Economic Implications on the Prices of Strategic Commodities.

Abstract

Russia–Ukraine war has increased systemic vulnerabilities of the global economy. Therefore, the purpose of this study is to identify the economic implications of the Russian-Ukrainian war (2022) on the global prices of strategic commodities. Strategic commodities were divided into three main types: energy commodities, food commodities, and mining commodities. According to World Bank reports, the monthly data of commodities prices from M05/2021 to M05/2022 has been used. In addition, a comparative analysis approach was used to compare the prices of commodities before and after the war. The study concluded that the Russian-Ukrainian war had a negative impact on the prices of energy commodities, especially crude oil, natural gas and coal. The results indicated that the Russian-Ukrainian war negatively affected the prices of food commodities such as wheat, maize and oil. The study found that some mining commodities such as aluminium, nickel and zinc were negatively affected by the war.