A Significant Increase in Tensions between Russia and the West (Essay Sample)

A Significant Increase in Tensions between Russia and the West
The war between Russia and Ukraine has had several impacts on both countries' economies globally. Ukraine has lost a significant amount of territory to Russian-backed separatists, leading to a decline in economic activity in these areas (Cifuentes-Faura 2022). The war has also led to an increase in government spending on the military and social welfare programs. This has put a strain on the Ukrainian government's finances. The war's instability has negatively impacted foreign investment in Ukraine, thus reducing its revenue (Cifuentes-Faura 2022).
The war also led to a significant increase in tensions between Russia and the West, which had a negative impact on the Russian economy. Western countries imposed sanctions on Russia, which limited its access to international capital markets and caused a decline in foreign investment (Mbah and Wasum 2022). In addition, the war led to a decline in tourism to Russia, as many people were discouraged from visiting the country due to the risk of violence (Cifuentes-Faura 2022). The global economy has been massively impacted by a decline in trade between Russia and the rest of the world. This was because many countries have closed their borders to Russian goods to pressure Russia to end the war (Mbah and Wasum 2022).