How Ukrainian Crisis can Change the World?

ukrainianThe current crisis in Ukrainian can affect the whole world badly. Ukraine crisis can change the policies of whole world in the following ways.

Expulsion from G8. Russia has been excluded from G8, a group of eight of the world’s most advanced economies. This way, the role of the country has diminished when it comes to international affairs. The efforts of Russia to join The International Energy Agency and Organization for Economic Cooperation and Development have been halted.

Less Dependence on Russia’s Oil and Gas. Efforts are already underway to develop new terminals for liquefied natural gas. In addition, the southern gas supplies would be expanded through Turkey and Georgia. The existing pipeline network and grids would also be upgraded. All these are to reduce dependence on oil and gas reserves of Russia.

NATO (North Atlantic Treaty Organization) Revival. NATO which was losing relevance has revived itself once again thanks to the situation in Crimea.

Russia China Alliance. The alliance can either emerge stronger with new oil and gas pipelines from Russia to Beijing or called off by China because of the economically weaker Russia. As of now, China is neutral to the situation.

BRICS. The President of Russia Vladimir V. Putin is trying to get the support from the emerging nations of the world – South Africa, Brazil, India, Russia and China. What would be teh final outcome is yet to be seen.

Sanctions. USA and Europe has imposed some powerful and tough sanctions related with finance, trade and economics. More of these can be imposed in near future.

Ukraine’s Exports. Since Ukraine is one of the major exporters of wheat and corn, the crisis can affect the market and exports.