Expert on the reasons for global economic decline

The sanctions confrontation and military conflict in Ukraine continue to have a detrimental effect on the global economy, with the US and the EU already facing record inflation. Doctor of Economic Sciences Valery Bainev told us what does supporting the Kiev regime in the confrontation with Russia mean for the world’s leading economies.

“One of the main reasons for the economic fever in the world is the rise in prices for raw materials in connection with the events in Ukraine and sanctions. Prices for many raw materials began to rise rapidly, since Russia and Ukraine are their major suppliers to the world market. First of all, of course, this refers to gas and oil. If before the start of the conflict prices varied around $80-90 per barrel, then at the peak they already reached $130. Lately, oil prices have been hovering around $85 thanks to the unlocking of reserves by some developed countries around the world. Gas prices for European consumers began to rise even before the start of the conflict, but with its outbreak they almost doubled, leading to rising prices for gasoline and electricity in the EU and significantly hitting the European economy. It is important to note the sharp rise in prices for agricultural products. Since Russia and Ukraine are the largest exporters of wheat, corn, sunflower and other products, prices for them have also increased significantly. Fertilisers, which also affect the harvest, have also become more expensive,” noted Valery Bainev.