Impact of Ukraine War´s on Latin America: geopolitics, extractivism and inflation

Abstract

The war in Ukraine has had several impacts on economic competitiveness and production in Latin America. On one hand, due to the sanctions imposed on Russia during the Crimean War in 2014, resulting in increased maritime transportation costs, which reduced Latin American production competitiveness by 2.4% during that period. Additionally, the increase in China's trade with the region has posed a significant challenge to Russia's aspirations in Latin America.

The impact of the war in Ukraine on Latin America particularly affects geopolitics, extractivism, and inflation; highlighting how the conflict has affected the region's economic relations. The main idea of this academic article is to provide an overview, analyzing various documents and their applications in the industry to understand the positions of nations condemning 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, etc., affecting Latin America’s ability to compete globally and maintain stable economic growth.