Economic impact of military conflicts on energy markets and global energy security

Abstract

In modern conditions, military conflicts are becoming more common, which makes it relevant to examine their impact on the country’s economy in all possible ways. The purpose of this study was to investigate the situation in the energy industry in Ukraine and other countries of the world in connection with the beginning of a full-scale Russian invasion of Ukraine. The main methods used in the study were analysis, systematisation, and comparison. The paper showed the role of the energy sector in ensuring national and global stability. It was concluded that military conflicts have a significant impact on the stability of this sphere, both in the warring country and in other states that may not be directly involved in the conflict. At the moment, there is a limited amount of statistical data available that can be used to assess the impact of Russia’s military actions on the energy sector of Ukraine. However, based on the available data, it was concluded that their impact is significant and can lead to major problems in the future if there is no decisive action at the moment. During the first attacks of 2022, this has already caused a shortage of energy and blackouts. As part of the study, quite a few approaches were proposed on how to overcome the consequences of military conflict in the global and national energy markets. In particular, the need to develop diversified energy supply routes, increase the use of renewable sources, ensure international cooperation and attract international investment in the industry was noted. The conclusions drawn in the framework of the study allow increasing the effectiveness of the national energy policy in Ukraine, given the military situation in which the country finds itself