The war in Ukraine and its impact on Latin America: geopolitics, extractivism and inflation

Abstract

The war in Ukraine has had several impacts on the economic competitiveness and production of Latin America. On the one hand, due to the sanctions imposed on Russia during the Crimean War in 2014, which resulted in an increase in maritime transport costs, which reduced the competitiveness of Latin American production by 2.4%. during this period. Furthermore, China's increased trade with the region has posed a significant challenge to Russia's aspirations in Latin America. The impact of the war in Ukraine in Latin America particularly affects in terms of geopolitics, extractivism and inflation. Well, it highlights how the conflict that has affected the economic relations of the region. The main idea of ​​this academic article is to provide an overview by analyzing various documents and their applications in the industry to understand the positions of nations that condemn the invasion, while others defend Russia and others seek to benefit from such a situation. This war has had economic consequences, such as inflationary pressures, increased pressure on governments to reduce taxes on raw materials, reduced international investment and disruptions in trade routes, which have affected Latin America's ability to compete globally and maintain a stable economic growth.