Sectors that benefited from the Ukraine-Russia war

As the Ukraine war emergency develops, the tactical and military hardware on both sides of the border gears up for a fierce battle, with Russia moving soldiers and reinforcements towards Ukraine and NATO sending fortifications to protect the borders of Eastern Europe. Each side continues with its war and arms proclamations, and it is difficult to get a full picture of what is truly happening in the affected territories of Ukraine. Russia, in particular, has spent much of the last two decades rapidly updating its largely obsolete weaponry, and it urgently wants to recoup the costs associated with increased arms sales.

Sectors that benefited from the Ukraine Russia war


A conflict resolution would positively help, yet even the exhibition of NATO's anxiety about the newly discovered force of the Russian military is very profitable for the crude oil business, automobile sector, etc. The different sectors of the domestic and global economies have been severely impacted by the sudden war, and certain sectors are gaining large sums of profit too. There has been a significant fluctuation in the rates of crude oil, sunflower oil, raw materials, supply chains, logistical costs, etc.

What are the economic advantages of the Russia-Ukraine War?

Last year, Russia was the largest supplier of gaseous petrol and oil to the European Union, and these strains are affecting GDP growth by creating crude oil price variations. The change in the prices of various goods and services across the world can be documented in the below data:

The percentage increase in oil prices in 2020 was 0.4%.

The percentage increase in oil prices during 2022 is 1.1%.

The percentage increase in gas prices in 2020 was 0.32%. 

The percentage increase in gas prices during 2022 is 0.64%.

Taking into account Russia's intrusion into Ukraine, oil prices have risen to their highest levels since around 2012, as purchasers continue to avoid Russian crude. The ongoing Russia-Ukraine war, which has impacted various areas of the domestic and global economies, including item advertising across different organisations, has left various nations looking for alternatives to Russia for unrefined components and raw materials of the petroleum industry. This came as a surprise, given the monetary sanctions imposed on Russia as a result of military tensions with Ukraine.

Sectors benefitted across India

Some of the sectors that have benefited from the ongoing war include India's large-cap IT industry, financials, and capital goods. Companies looking to exit the Ukrainian and Eastern European markets may find the Indian IT sector appealing.

Another sector that may be resilient to the crisis in India is the agriculture sector, which currently has sufficient inventories to keep the economy running even if Russian supplies get disrupted.

The spike has been driven mainly by fears of supply-side disturbances, as a Russian attack in Ukraine poses a potential threat following Putin's deployment of troops to the dissenter regions of Donetsk and Luhansk. A Russian intrusion into Ukraine could disrupt unrefined supplies internationally as well as lead to sanctions imposed by the US and Europe.

Crude oil prices have risen over the last few months due to supply concerns following tensions between Russia, the world's second-biggest oil producer, and Ukraine, which is a producer of natural gas and crude oil in the global economy. 

Once more, after the Russia-Ukraine war, it is difficult to foresee which direction the circumstances and markets will head, but it appears that we are ready for a time of high energy costs and crude oil prices that are driven by war and joined with the prices of market essentials rising at a rate never witnessed before by the international markets.

Increasing costs are insensitive to the financial situation of the customers in the market. In fulfilling their gas and energy demands, governments are requesting higher electricity and power bills. Furthermore, high energy costs add to the inflated cost of essentially all labour and products, further increasing the dangers of recession and economic unrest across the globe.


Related Article

Premium Articles