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Unravelling the Global Value Chain: Impact of the Russia-Ukraine Conflict - A Report
- THE GEOSTRATA
- 43 minutes ago
- 3 min read
The Russia-Ukraine conflict of 2022 has triggered significant disruptions in the global value chain, particularly affecting the food and fuel sectors. Stemming from historical tensions and contemporary geopolitical dynamics, the conflict escalated, raising concerns about regional stability and global economic repercussions.
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This paper examines the multifaceted impact of the conflict, focusing on the disruption of oil supply chains and agricultural exports. With Russia being a key player in global energy markets and Ukraine a major contributor to the grain market, their roles are pivotal in shaping global economic dynamics.
The imposition of sanctions by Western nations further complicates the situation, leading to price caps on Russian oil and strategic realignments in international trade relationships. Moreover, the nuanced stance of countries like India adds layers of complexity to the geopolitical landscape. Through a comprehensive analysis, this paper sheds light on the intricate interplay between geopolitical tensions, economic sanctions, and global supply chains in the context of the Russia-Ukraine conflict.
In an interconnected world, the stability of global supply chains is crucial for sustaining economic growth and ensuring the smooth flow of goods and services. However, recent geopolitical shocks, such as the Russia-Ukraine conflict of 2022, have underscored the vulnerability of these supply chains to disruptions.
While the conflict itself remains a focal point, its impact extends far beyond regional boundaries, reverberating through various sectors worldwide. The Russia-Ukraine conflict has illuminated the fragility of global supply chains, particularly in critical sectors such as food and fuel. As one of the most significant geopolitical crises of recent times, it serves as a stark reminder of the susceptibility of these chains to political tensions and military conflicts.
In this context, understanding the mechanisms through which geopolitical shocks propagate disruptions in global supply chains becomes imperative. The interdependence of nations in trade networks amplifies the effects of localised conflicts, magnifying their impact on a global scale.
HISTORICAL CONTEXT
The ongoing conflict between Russia and Ukraine is deeply rooted in historical ties and contemporary grievances, spanning several decades. Both nations share not only a border but also a common past, culture, and ethnicity, which have historically shaped their relationship. However, tensions escalated dramatically in 2014 when Ukraine expressed a desire for closer ties with the European Union and NATO, viewed by Russia as a direct threat to its strategic interests and regional influence.
The catalyst for the conflict came when Russian troops, without insignia, began occupying strategic locations in Crimea, an autonomous republic of Ukraine. This covert military intervention culminated in a controversial referendum on March 16, 2014, in which Crimea voted to secede from Ukraine and join the Russian Federation. The international community widely condemned the annexation of Crimea as a violation of Ukraine's sovereignty.
Subsequently, pro-Russian unrest spread to eastern Ukrainian cities, particularly Donetsk and Luhansk, where separatist movements, allegedly supported by Russia, declared independence from Ukraine and sought closer ties with Moscow. This ignited a protracted conflict between Ukrainian government forces and pro-Russian separatists, resulting in significant human suffering and displacement.
The situation further deteriorated on February 24, 2022, when Russian military operations commenced in Ukraine. Troops entered from multiple directions, including Belarus in the north, Russia in the east, and Crimea in the south. President Putin characterised the action as a "special military operation" aimed at safeguarding the population of the Donbas region.
The invasion has triggered widespread condemnation from the international community, leading to economic sanctions against Russia and calls for a peaceful resolution to the crisis.
The conflict has not only exacerbated tensions between Russia and Ukraine but also strained relations between Russia and Western countries. The outcome remains uncertain, with efforts underway to negotiate a ceasefire and find a diplomatic solution to end the bloodshed and restore stability in the region.
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For all official and academic purposes, use the following as a citation, which follows the Chicago Manual Style.
Elizabeth Jose
“Unravelling the Global Value Chain: Impact of the Russia-Ukraine Conflict”
THE GEOSTRATA, December 03, 2025.
BY ELIZABETH JOSE
CENTRE FOR POLITICS AND LAW
TEAM GEOSTRATA