Effects of the Ukraine-Russia-war on the economy of Botswana

Flag of Russia and Ukraine painted on a concrete wall.
Flag of Russia and Ukraine painted on a concrete wall.

The recovery of the global economy from the negative effects of the coronavirus pandemic (COVID-19) is bound to decelerate due to the geopolitical conflict in Eastern Europe. On February 24th, Russia invaded neighbouring Ukraine thereby escalating the Russo-Ukrainian conflict that has its origins in 2014.

This move has been mostly condemned by the United States of America (USA) and Europe. Now about to enter its fourth month, the invasion is considered the largest attack on a European state since World War II (WWII) and has also resulted in the largest refugee crisis in Europe post--WWII war with over six million Ukrainians seeking refuge in neighbouring countries. Since the political issues, which triggered the war are quite complex, this paper seeks to only highlight some of the possible economic effects of the war on Botswana.

Besides being a major exporter of crude oil, Russia is the third-largest global producer of petroleum and liquid fuels after USA and Saudi Arabia. Consequently, the war is going to negatively impact fuel prices in Botswana since it is a net importer of brent crude oil and refined petroleum products. Punitive sanctions that have been levelled against Russia for its invasion of Ukraine will negatively affect the global supply of oil thereby putting an upward pressure on its price. The figure below shows the prices of brent oil prices for a one-year period from June 2021 to May 2022.

Editor's Comment
Shame on the Police!

According to a press statement from the police, unidentified armed men attacked on duty police officers at the station in the early hours of Tuesday.During the attack, the suspects stole 14 riffles, five pistols and an undisclosed number of ammunition.Although unconfirmed, it is alleged that the suspects were just carrying knives and axes, which they used to scare the men and women in uniform before they took them hostage to help themselves to...

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