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

Abstract

The war in Ukraine has had several impacts on Latin America's economic competitiveness and production. On the one hand, the sanctions imposed on Russia during the Crimean War in 2014 resulted in increased shipping costs, reducing the competitiveness of Latin American production by 2.4% during that period. Furthermore, increased Chinese 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 is particularly evident in terms of 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 industry to understand the positions of nations that condemn the invasion, while others defend Russia and still others seek to benefit from the 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 to trade routes, etc., which have affected Latin America's ability to compete globally and maintain stable economic growth.