The Russia-Ukraine Conflict’s Impact on Europe’s Economy and Living Costs, and the US role
By Stephan Ossenkopp, independent analyst
The Russia-Ukraine conflict is having a dramatic impact on the living standards of the European population. In addition, the U.S. is exploiting the geopolitical situation to decouple Europe from Russia and tie it more closely to itself. Research suggests that the standard of living in Europe is falling sharply, primarily as a result of price inflation in production and consumption, Economic sanctions from Europe against Russia, and because of interrupted supply chains leading to shortages in critical goods. Although the origins of these phenomena have been visible in their infancy prior to the commencement of military action on February 24, 2022, they have since not only dramatically intensified, but are increasing in an accelerating manner.
True, some of the price increases were already in response to the lockdown in spring 2020, and difficulties in sourcing through global supply chains were also already described as problems for the economy at that time. However, the new drastic sanctions against the Russian economy, primarily from the European Union, with the goal of weakening the country, have sped up the dynamics of price escalation, supply problems, and uncertainty unprecedentedly. The unanimous opinion of analysts is thus that the Russia-Ukraine conflict is exacerbating existing problems. This will lead, if the current trend continues, to an ever greater separation of the European economy and society from Russia, driving Europe ever more strongly into the arms of the USA.