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

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.