The crisis between Russia and Ukraine is unfolding thousands of miles from the nearest American city. And yet, millions of American families would feel the economic consequences of a large-scale conflict. This is because the global economy and financial markets are interconnected. As Covid demonstrated, events on one side of the planet can cause shock waves on the other.

During the conflict with Ukraine, the United States has provided $43 billion in support to Ukraine, covering everything from missiles to tanks, ambulances, air defense capabilities and much more. Inflation is the biggest problem facing the American economy. And the crisis between Russia and Ukraine could make it even worse. For example, Russia is one of the largest producers of oil and natural gas, a barrel of oil could exceed $120 per barrel, if Russian crude oil exports were to be reduced by half then it could reach $150, this would still trigger plus the price of gasoline.(https://cnnespanol.cnn.com/2022/02/16/conflicto-rusia-ucrania-economia-cartera-trax/)

Not only would this drive up prices at the pump, but rising oil and natural gas prices would drive up home heating and electricity costs. Rising energy prices would make flights more expensive and keep transportation and input costs high for companies already grappling with rising expenses. Companies will most likely pass on at least some of these higher costs to consumers in the form of price increases. Complicating the economic situation of Americans, through their ways of life as consumers.

To better understand this issue I spoke with TCA social studies teacher Elvin Batista.

What support does Ukraine have in its war?

The United States sends countless amounts of economic support, and even they are the important ones in sending money and resources to Ukraine. There are also other countries that send resources, for example Germany and England, and practically all Western countries are also helping them.

How the conflict between Russia and Ukraine could affect the US economy?

The thing is that Russia does not surrender, they feel that the territory of Ukraine is theirs and in some way they are blocking the economy because Ukraine represents a significant part of the world markets for corn, wheat, barley and sunflower oil. So that is interrupting the dynamic economically, so the price of food increases because it runs out.

So the war between Ukraine and Russia is affecting America’s trade and economic fortunes. which has been a problem for consumers or citizens in their daily lives, when they have to deal with depressive increases in the products they consume daily. Russia and Ukraine are key factors for the transportation and export of food or natural gas from the United States and that makes economic life complicated until the issue is resolved.