Military Conflict in Ukraine and Its Economic Impact

Abstract

The purpose of the article is to show that the world of politics is inextricably linked with the economic sphere, and that political decisions have a huge impact on the economic environment regardless of whether they are made in peacetime or during ongoing conflicts. The current armed conflict in Ukraine shows vividly how the pursuit of Russia’s strategic goals, which are contrary to the principles and norms of international law and threaten world peace, unites Western countries in making decisions aimed at forcing Russia to revise its actions. These decisions have an economic dimension to the greatest extent, because economic sanctions in the absence of military engagement are the only tool in the hands of the West. Sanctions as a means of exerting pressure change the conditions under which the economies of both the sanctioned and the imposing entities operate. The severity of sanctions depends largely on their size and duration. In addition, sanctions automatically trigger so-called market effects that can be felt universally in the global market economy. The following research methods were used in the study: analysis of the Polish-language literature, descriptive method, statistical method.