Unrest in Ukraine affects Michigan’s economy

As the Russian-Ukrainian war unfolds across the Atlantic Ocean, its economic effects are felt in the United States.

Russia is one of the world’s largest exporters of oil and natural gas, particularly to

Europe, and the Russian invasion of Ukraine has a major grip on many supply chains and imports.

One of the courses Pozo teaches is titled “Hot Spots in Global Affairs,” which was recently awarded at a World Affairs Council conference by Fiona Hill, a former intelligence officer for Russia and the United States. Eurasia.

Tommy Jelsomeno, a student at Western Michigan University who studies global and international relations, said, “Especially with a lot of gas coming from Russia and Ukraine, I think we will definitely see some domestic changes.

Chart showing average national gasoline prices from a year ago and today. Information collected from GasBuddy Credit: Sarah Marilyn

“This possibility has caused the national average gasoline price to spike significantly over the past week, and it could escalate at any time, keeping gasoline prices elevated for the foreseeable future,” Patrick said. De Haan, Head of Petroleum Analysis at GasBuddy. “In addition to the unstable situation with the Russian invasion, we’re also entering the time of year where seasonality pushes gasoline prices up 25 to 75 cents by Memorial Day. It just looks like a perfect storm for motorists at the pumps, with little to no relief anytime soon.

According to GasBuddy, the best days to refuel are Friday and Monday.

Calendar of the best days of the week to buy gasoline Credit: GasBuddy

Photos of Speedway and Shell gas stations showing higher than average prices Credit: Sarah Marilyn

The United States is feeling the economic side effects of the Ukraine crisis.

Not only did the Russian invasion of Ukraine raise concerns about economic side effects, but it also raised concerns about how this war might escalate.

“I think my students in that class were saying they stayed up all night the day of the invasion,” Pozo said.

“We actually have a TA in one of my classes who is from eastern Ukraine,” Jelsomeno said. “Talking to her was very difficult because for a lot of people in my class, there’s not a lot of connection to Eastern Europe from what I’ve seen or what I’ve seen. I was conscious.”

Jelsomeno also said that even before the conflict and fighting started, his class was talking about rising tensions. They knew an invasion was possible, but they never thought it was likely.

“I think even at the faculty level, I don’t think a lot of people expected it to get this hot,” Jelsomeno said. “Especially as quickly as he did.”

Search results on imports of goods from Russia

According to the U.S. Department of Agriculture, Russia and Ukraine are also responsible for one-third of global wheat exports, one-fifth of global corn, some metals and nearly 80% of global metal production. ‘sunflower oil.

“As we approach spring, Russia is an exporter of wheat, quite a bit of wheat. I think Ukraine exports corn, so the supply of these products will be limited. said Patrik Hultberg, professor of economics at Kalamazoo College.

“Being closed during COVID for 6 months with no bill relief, and now having to raise our prices so we don’t lose money every week, has been a struggle. Food and alcohol prices keep going up and I don’t see nothing going down,” said Deb Owen, owner of Web Bar.

“When the cost of living goes up due to the war in Ukraine, fewer customers come in because they lack the extra money to eat out,” Owen said. “I fear we will have to sell if prices continue to rise for food, gas and electricity.”

“Other important commodities are things like metals,” Hultberg said. “Palladium, titanium, aluminum, you know. Some of these metals are used in the automotive industry…you know that the automotive industry supply chains are already stretched, which is going to compound this problem.

Protests grow amid Ukraine crisis

Demonstrations have erupted around the world in support of Ukraine, as businesses in Michigan are finding ways to protest the war in their own way.

“We will not buy Russian products to hold Vladimir Putin responsible for what is happening in Ukraine. It’s the least we can do,” said House of Wine co-owner Emily Lynch.

The Russian invasion of Ukraine will have a profound impact on local economic procedures, but it is hoped that it will end soon. There will be economic impacts on the United States, however, but if the war ends soon, the impacts will not be too severe.

While some companies such as House of Wine are protesting the Russian-Ukrainian war by not buying Russian-made vodka, they are turning to other brands such as Swedish-made Absolut vodka. Photo by Emile Rizk

Media

Flourish link to gas price averages: https://public.flourish.studio/visualisation/8833107/

Over the past 20 months, gasoline prices in the United States have steadily increased. However, with the Russian invasion of Ukraine, prices are expected to continue to rise. Graphic design by Emile Rizk

Full interview with Patrik Hultberg (7 minutes): https://soundcloud.com/emilerizk/patrik-hultberg-interview?utm_source=clipboard&utm_medium=text&utm_campaign=social_sharing