How will the Russian invasion affect you?

Many Australians will be watching the Ukraine invasion with deep empathy while others will be saying "how does it affect me?"

Russia’s invasion of Ukraine has the potential to change life in several ways. And for those mostly concerned with hip-pocket issues, bottom lines look to be inflated during and possibly after the conflict.

And the biggest price rises may well occur in common specific goods and services.

Writing for PBS NewsHour, economist William Hauk says sanctions that the international community is placing on Russia are likely to cause prices of some goods to spike. And the longer the war drags on, the higher prices could climb.

In addition, Ukraine provides some important goods to the world that now may be in short supply for some time to come, leading to higher prices.

Brent crude oil prices have already shot up to more than US$100 a barrel. Which means higher petrol prices in Australia.

Petrol prices were laready on the up, but the conflict will create chaos with oil supplies in the conflict region, meaning we can expect that trend to continue.

Ukraine is a major supplier of many minerals and other commodities. And as soon as Russian troops entered the country, Ukraine’s currency began to decline in value, which will lead to an "increase the cost of their exports,” Dawn Tiura, president at Sourcing Industry Group, told CNBC.

Many elements crucial to the manufacture of semiconductors, jet engines, automobiles and medicines also come from Russia, but may soon be stymied.

Russia and Ukraine are two of the world’s top exporters of wheat and the invasion could impact the 59 million metric tons of wheat the two nations export annually.

“The price impact of the withdrawal of such amount of wheat would be extraordinary, especially because the demand for human consumption of wheat is very inelastic,” says senior commodity analyst at RaboResearch Carlos Mera.

Ukraine is also a major producer of corn, and China is also a big recipient of Ukrainian corn, which means corn and prices of products reliant on corn could soon soar.

Russia’s invasion of Ukraine could lead to higher inflation.

Just when you thought we may be coming out from the shadow of global chaos, eh? We'll let you comment in that!

7 comments

Perhaps Australians need to think about being more self sufficient ... grow a few veg and fruit in the back yard.

Prices rise, prices fall. The reasons for that are many and varied. What is happening in Ukraine has affected me, not because I ever equated price rises, but for the sheer terror on the faces of the residents and the bravery of those who stand and fight for their country. The President's response when offered a flight to safety when he said "I need ammunition, not a ride" was inspiring.

Australia produces more wheat than we could ever use that's why we export it. With this in mind, I'm wondering why wheat products will rise in price???

We also have oil to burn, why do we export what we extract only to import it from other countries at a much higher price??

I may not be very savvy with economics, but this seems totally ludicrous to me. "Charity starts gat home" and we should be looking after our  own country's needs as a priority.

Totally agree wit GeeT!

It's probably been about a year since I've been able to read people's comments on YLC articles, let alone comment on them myself! Wow, this is great! Hope i can do the same on any other articles written!  Thanks YLC :)

It well over time that we should be independent and not have to rely on others -- as soon we will be in very deep doo-doo

Stop importing and start to make things like we used to -- that means more jobs and better products.

And stop selling our country off -- Morrison did that with the Darwin port

In October 2015, the Chinese-owned Landbridge Group won the bid for a lease of Port Darwin. The then Country Liberal-controlled Northern Territory Government under then Chief Minister Adam Giles granted the company a 99-year lease for A$506 million.

China Merchants Port Holdings Co. Ltd. is a 50% shareholder in the Port of Newcastle, on Australia's eastern coast and a key hub for exporting coal. China Investment Corp. is part of a consortium that bought the Port of Melbourne in 2016.

My comment is the reporting of the conflict.  We never heard of any indiscriminate bombing of hospitals in the Gulf War by the coalition of the wiling.  If there were any it was accidental or the locals were hiding terrorists in there.

Never any mention of breaking international law or accusing the leaders as being war criminals.  Why is this so different.  The only outcome of any war is number of deaths.

I'm still not sure why this started.  I do not support the invasion I am just confused why we report thins so differently.

The behavior of the Government in regard to the refugees is also puzzling, cant write enough visas for the Europeans.

On top of global supply chain problems due to COVID and climate/weather issues ... the situation in Ukraine seems to be a final nail in the coffin. The perfect storm as some say. Everything becoming hard to get or very expensive.

7 comments



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