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Ukraine Crisis: Why It Matters To The World Economy

717 words - 3 pages

Recently, Ukraine has fallen to times of turmoil, and the state of the economy is not helping either. Originally, Ukraine wanted to make a trade agreement with Europe, perhaps also bringing Ukraine closer to the European Union. This brought outage among its people, sparking riots that are still present today. Plenty of people have been injured or even killed in these uprisings, making it a deadly ordeal for officials to take control, or at least come up with a truce to promote peace. A country in crisis both between its people and economically, could have a negative effect not only on the countries immediately surrounding it, but the world as a whole. The crisis in Ukraine is a serious issue and it effects everyone economically present in the world. There are several areas that a crisis in a single country like Ukraine could pose a whole economic domino effect throughout the rest of the world.
The first major idea brought up in the article was the importance of geography that Ukraine has tying Europe and Russia. Europe receives around 25% of its fuel from Russia. To fulfill all of the gas needs, the gas is transported through major pipelines. One of these pipelines flows through the heart of Ukraine, which pumps half of the gas Russia sends to Europe. Imagine if the pipeline were to shut down because of riots and other political disputes that might follow. Even if the pipeline were to only shut down for a couple days or a week, the economic impact on Europe would be astronomical. Gas prices would skyrocket, making not only Ukraine or Europe, but the rest of the world to fall into disarray because of rising prices effecting the common household.
The next important point that this article is the effect trade would have on a crisis in a country like Ukraine. Ukraine's geography allows it to grow a surplus of corn and wheat, making it one of the top exporters of these products in the world. Many nations rely on these exports, and a crisis in Ukraine could rise the prices even if there was no threat to decrease...

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