War Economy: How Russia and Ukraine Pull Economic Levers in Conflict

The ongoing Russia-Ukraine war is being fought not just with guns, but with economic levers—from energy, trade, payments systems, to critical supply chains. Each side uses financial tools to gain pressure.

Russia wields its energy exports as a weapon. Disrupting gas and oil supplies to Europe forces nations to juggle energy security and moral alliances. In response, Ukraine and its allies impose sanctions, trade bans, and financial restrictions to isolate Russia economically.

Another battleground is payments and banking systems. Western nations have expunged Russian banks from global payment networks like SWIFT. Russia counters by retrying to create parallel financial systems and deepening ties with non-Western partners.

Yet the war’s long shadow affects global markets—particularly in agriculture and food security. Ukraine, often called the “breadbasket of Europe,” exports grains to Africa and the Middle East. Russian blockades and export controls strain world food supplies.

In essence, the war’s economic front is complex and fast-moving. Each action—whether freezing assets, raising tariffs, or cutting off energy flows—can tilt the balance of influence as much as any battlefield move.