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Transcript: For 8 months, a Civil War, a revolution, Terrorist Insurgency, and Skirmishes with a Superpower taken place in the small country of Ukraine. It all started when the Pro-Russia Prime Minister of Ukraine was overthrown, and a NATO friendly Prime Minister was elected. Then parts of Ukraine (like Crimea and Donetesk) started having independence referendums. To make things more complicated, Russia started sending troops into Crimea and seizing land. Eventually, Crimea came under their control. Soon, independence referendums started to become violent and militias formed. And started clashing with Ukrainian forces. There has been lots of collateral damage, including a commercial aircraft from the Netherlands. Part 1: effect on Ukrainian Economy Part 2: Effect on Russian Economy Now you know the basic situation in Ukraine. However, the situation looks grim. Militias in Ukraine are only getting stronger and forming local governments. In recent elections voter turnouts have been horrible. There is some good news though. The international community is trying to do all they can without resorting to violence. Their sanctions are receiving positive results, and Russia may be forced to stop making the situation worse. The Ukrainian Economy has taken a huge hit ever since the turmoil started in February. According to the Washington Post, approximately 22% of available oil wells are being used because of militia activity. Numerous railroads and bridges have been damaged, and with the infrastructure slowly degrading trade and commerce is shrinking. Production of goods has slowed and the Ukrainian GDP is supposed to shrink by 15% this year. Additionally, many of the provinces they lose affect their economy significantly. The loss of Crimea took of 3.6% of the GDP. Additionally, they lost one of the few warm water ports in the region. Bibliography Russian encroachment on Ukrainian Territory was met with extreme disapproval, and many countries placed sanctions on them with various effects. Foreign investors have pulled out much of their money from Russia, and now growth is at a standstill. In addition, global oil prices are going down. For a country like Russia where their economy is dependent on oil, this is not good news. Russia get's a lot of its food products from other countries, and when the sanctions and embargo began, food prices in Russia rose. This causes inflation, which is a whopping 8.3% . No one wants to lend Russia money anymore, and those who do charge very high interest rates. Now, they must look inside Russia for loans. Another huge part of this is oil. Russia supplies 30% of Europe's oil, and much of it comes through a pipeline that runs through Ukraine. For years Ukraine hasn't payed for the oil it purchases from Russia, and now Russia refuses to supply them with oil, unless they are payed back. A deal was going to be enacted where Ukraine would get discounts on oil, but the E.U. interfered and the deal is being stalled. The E.U. is also blocking Gazprom (The oil company that extracts most of Russia's oil) from creating wells and pipelines through other countries. Now, because of what Russia did, fewer people want to buy Russian oil, and look elsewhere on the market. These have taken a huge hit on Gazprom. Their shipments to Europe have dropped 3.9%, and their shipments to former Soviet states have dropped 11% according to Bloomberg. Conclusion Part 3: Oil Graver, R. (2014, October 23). Russia Tones Down the Rhetoric as Its Economy Struggles. Retrieved October 27, 2014, from http://www.thefiscaltimes.com/2014/10/23/Russia-Tones-Down-Rhetoric-Its-Economy-Struggles Mufson, S. (2014, October 15). Ukraine's economy choking under Russian pressure. Retrieved October 27, 2014, from http://www.washingtonpost.com/business/economy/ukraines-economy-choking-under-russian-pressure-but-western-help-is-scarce/2014/10/15/d983dbfc-4fc6-11e4-babe-e91da079cb8a_story.html Pavliva, H. (2014, October 23). Gazprom Declines as Gas Supply Deal With Ukraine Delayed. Retrieved October 27, 2014, from http://www.bloomberg.com/news/2014-10-22/gazprom-declines-as-gas-supply-deal-with-ukraine-delayed.html INTRODUCTION By Rohan Sinha and Richie Minasian Marketing Current Event: Crises in Ukraine
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