RUSSIAN – UKRANIAN WAR: THE IMPACT OF ECONOMIC SANCTIONS ON RUSSIAN AND GLOBAL ECONOMY THROUGH THE EYES OF AN ACCOUNTANT

Abstract

Russia's invasion of Ukraine in early 2022 has increased geopolitical tensions between Western countries and Russia by lowering global growth expectations due to uncertainty about the effects of the conflict. While on the one hand, the US and the European Union are trying to influence Russia's behavior by introducing large-scale commercial and financial embargoes and sanctions, Russia is defending itself by imposing sanctions on European officials. It is clear that such mutual actions led to shocks in the supply of energy and other goods. Numerous companies around the world stopped cooperation with Russian companies, causing shocks in the financial markets as well, which finally resulted in an increase in the general level of prices, i.e. global inflation. This paper considers the economic impact and potential implications of the Russian-Ukrainian war on the economy of Russia itself, as well as on the global economy.