Economic Impact on Russia After the Russian-Ukrainian Conflict

Abstract

Based on the premise of the outbreak of war in the Russian-Ukrainian conflict war, the following article examines the impact on the Russian macro and micro economy. Raw oil, fertilizer fuels and gas energy are the main pillars of the Russian economy, while the domestic economy is dominated by the service sector. The methodology of research on the Russian economy is the integration of information and data through academic articles. One of the main sources of damage to the Russian economy was found to be the series of economic sanctions implemented by the United States and the European Union, and the main groups affected by these losses, in terms of data, were the wealthy Russians and senior members of the government leadership. At the macro level, Russian energy exports have suffered a severe setback, with a larger percentage drop compared to previous years. In the meanwhile, however, the losses to the Russian economy and the impact from inflation have been reduced by increasing the share of trade with the Chinese market and improving the domestic economic policies. This study will help to explore the development of a more appropriate economic policy in Russia and the direction of foreign trade, as well as recommendations for the reorganization of the economic structure in the country. However, the drawback of the study is that the material or content of the study may not always have a clear political stance, which may affect the judgment of researcher to the real state of the Russian economy.