Sensex and Nifty 1.5% down amid Russia-Ukraine crisis Russia Ukraine conflict explained

There are many reasons behind the ongoing volatility in the Indian stock market such as rising global inflation, expectations of an interest rate hike by the US Fed, crude oil prices hitting record levels, and foreign investors’ capital outflow from the Indian market.

Russia Ukraine history explained

In 1991 the Union of Soviet Socialist Republics (USSR) was fragmented in almost 15 different countries. Both Russia and Ukraine were part of the USSR which became separate independent countries after 1991.

Russia Ukraine history explained

However, even before the formation of the Soviet Union or the USSR, there were many points in history when both Russia and Ukraine were part of the same empire.

Russia Ukraine history explained

And there were many instances when Ukraine was not part of the Russian Empire but was ruled by other parts such as Polish-Lithuanian Commonwealth, Austria-Hungary, and Ottoman Empire.

Russia Ukraine history explained

Ukraine was established as an independent nation in 1917 but became part of the Soviet Union back in 1922. After the dissolution of the USSR in 1991, Ukraine regained its independence.

US indices such as Dow Jones and Nasdaq also closed lower.  Moscow Exchange has also suspended trading in all markets till further notice.

Apart from this, not only the equity market but also the crypto market has seen a sharp fall today. Amidst this negative news, today the price of Brent Crude oil also hit $ 100 per barrel.

Crude oil price is now at its last 7 year high. This will impact the Indian economy as almost 85% of the crude oil processed by Indian refiners is imported.

Russia is the largest exporter of crude oil and natural gas. Apart from this, Russia is a key supplier of many metals such as aluminum, copper, etc., and Agri products such as wheat to many countries.

Russia Ukraine conflict explained