How will Asian countries be affected by the war between Russia and Ukraine?

DNHN - The research firm says food prices are very sensitive to war because both countries make a lot of it. In some Asian countries, they need goods from Russia, like fertilizer. Global scarcity has caused prices for agricultural products and grains to rise, which has led to higher prices for food and other goods.

Even if countries don't buy directly from Russia or Ukraine, prices will go up, the EIU says in a newspaper. This is because the region relies so much on energy and agricultural goods from other countries.

There is a lot of dependence on Russia and Ukraine as a source of fertilizer and grain in Southeast Asia and South Asia, which could cause problems with farming.  

Russia has been hit with a lot of sanctions from the rest of the world because they started a war with Ukraine that they didn't need to. People in the US have already put restrictions on energy. People in the UK plan to do the same later this year, too. Even the European Union may decide to do the same.

Sanctions have impacted the country's banks and state-owned industries. Sanctions have also been imposed on the country's bonds. Rare gases required in semiconductor manufacture may also be shut off in North and East Asia, home of the world's greatest chipmakers. In a report, the EIU stated.

Some nations in Asia-Pacific may lose Russian armaments, affecting other regions of the globe. Since the battle started in late February, global oil, gas, and food prices have risen sharply. Some of those products come from Russia and Ukraine.

A year ago, wheat prices were up 66%. Now they're down a little, but they're still up a lot. Corn prices rose more than 40% in the same period. Several countries may be affected by price rises, but others may be able to gain from them.

The EIU said that some countries will benefit from higher commodity prices and the search for new sources around the world. It's not just food and energy that Russia is having an impact on. It's also nickel because Russia is the world's third-largest nickel supplier.

Countries that will benefit from a rise in the prices of their goods include: Australia, Indonesia, and Mongolia are all coal exporters, Malaysia and Brunei are two of the countries that sell crude oil, and Australia, Malaysia, and Papua New Guinea are all use liquefied natural gas. Nickel comes from Indonesia and New Caledonia. Wheat comes from Australia and India.

Countries will be damaged by price raising based on the exporting ratio report. In terms of fertilizer use, Indonesia has more than 15%, Vietnam has more than 10%, Thailand has more than 10%, Malaysia has about 10%, India has 6%, Bangladesh has 5%, Myanmar has 3%, Sri Lanka has about 3%, and Malaysia has about 10%. (Approximately 2%).

People in Pakistan (approximately 40%), Sri Lanka (approximately 30%), Bangladesh (approximately 20%), Vietnam (approximately 10%), Thailand (approximately 10%), and the Philippines (approximately 5%) are the main sources of grains from Russia (approximately 5%).

More than 40% of Ukraine's grain imports come from Pakistan, more than 20% from Indonesia, more than 10% from Thailand, more than 10% from Myanmar, more than 10% from Sri Lanka, and less than 5% (about 5%) from Vietnam South.

Russia has a lot of different kinds of weapons. People from the country have been buying guns from it for two decades now.

A research firm said that in the future, Asian countries won't be able to get these weapons because of sanctions against Russian defence companies. However, that will also open up new opportunities for manufacturers from other countries and those in our own country, too, the report said. Based on their share of total imports, the countries that rely the most on Russian arms imports from 2000 to 2020 are the ones that are at the top.

Nearly all of Mongolia's land is covered by mountains. Vietnam has more than 80% of its land covered by mountains. China has more than 80% of its land covered by mountains. 40% of its land is covered by mountains. Mountains cover 40% of Myanmar's land area (less than 10%).

As long as Russian airlines can fly to Asia, tourists from the country may not be able to go there, though. "Tourism is the main source of trade in services, and with Asian routes still open to Russian airlines, unlike in Europe, this trade could continue." "Continuous and scalable," said the EIU, which is a company.

According to the report, Russia's economic problems, the devaluation of the ruble, and the withdrawal of international payment services from Russia are likely to make Russians less likely to go on vacation.

There are also a lot of Russian banks that aren't part of SWIFT, which is a global system that connects more than 11,000 member banks in about 200 countries and territories.

When the war started, the ruble was down almost 30% against the dollar. Since then, the price of the coin has gone up again, but it is still about 10% lower than it was at the start of the year. This hurts the wallets of average Russians.

However, Russian visitors are not heavily reliant on Asia. The EIU stated Thai tourism benefited the most from Russian tourists in 2019, with 1.4 million. But it was barely 4% of the overall attendance that year. Russia sends the most tourists to Vietnam. Russians also like visiting Indonesia, Sri Lanka, and the Maldives.

Without war or conflict, Russian tourism could become more important because of the restrictions on Chinese tourists leaving, the EIU said.

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