History between Russia and Ukraine
Russia Ukraine war started with annexation of Crimea by Russia in 2014. The two countries were the founding members of the Soviet Union. They aimed to achieve communism including the development of socialism and peaceful coexistence with capitalist countries. The soviet forces came together to liberate the Eastern countries from the Nazi control. They remained in the region even after German’s surrender in 1945.
The fall of the union was by a decision to have multi-system and have a presidency for the union. The communist control eventually destabilized by a slow process of democratization leading to the collapse.
Why attack Ukraine
Russia Ukraine war can be attributed to North Atlantic Treaty Organization (NATO) factor. Russia feels threatened by NATO expansion in the eastern Europe in terms of security and as a plot directed towards the country. Putin has expressed concerns for many years that if continued expansion, it would likely be met with serious resistance by Russians even military action. The West opposing side particularly United States (US) argues that Russia is an expansionist state. Vladimir Putin is seen as the embodiment of that crucial Russian ambition to build a new Russian empire.
“This was … always about naked aggression, about Putin’s desire for empire by any means necessary,” President Joe Biden said on Feb. 24, 2022.
The control of resources is also contributing factor to the attacks. Ukraine has vast natural resources ranging from oil, coal, etc. A case study is the invasion of energy resources in the Crimea region.
Reaction from other countries.
Many people have protested for the Russia Ukraine war to end. Even some prominent Russians have joined the protest leading to mass arrest. This has halted the normal business operations within these countries.
Elon musk has provided support by offering internet services to Ukraine using the Star-link satellite program. The people of Ukraine can access the internet even in remote areas and reach their loved ones.
European Union (EU), US, China and other countries and organizations have sanctioned Russia. The aim is to cripple the country’s economy and weaken its aggression. The western nation has frozen assets belonging to Russia’s central bank. This has limited its ability to access $630 billion in international dollar reserves.
There are agreements to remove the SWIFT messaging system from selected Russian banks which enables smooth transfer of money across borders.
Russia possible move that will affect your purchasing power
The country is the 20th largest importer and exporter and is the world leading natural gas exporter, the 2nd largest natural gas producer, and the 2nd largest oil exporter, and producer.
If Russia decide to react on the sanctions imposed and hold its energy export this could have devastating effects on all products worldwide leading to commodity price increase.