Answer to Question #317772 in Economics for ziwe

Question

which industries are affected by the Russia-Ukraine conflict when the USA and European countries imposes sanctions on Russia. (You are allowed to choose more than one industry)

Provide an in-depth discussion on how the sector is affected and what impact will that have on the South African economy as a whole. Cite empirical evidence and news to support yourself.

Answer 1

The USA and European countries imposed sanctions on Russia first of all in the energy, financial and military sectors.

Sanctions in the energy sector can prevent a significant amount of oil and gas to enter the global market. This can cause a substantial growth of the global energy prices and requires steps towards growing relevant supplies from the alternative markets.