How the Ukraine War Will Upend Europe

The war in Ukraine that’s been underway for the past 10 months has been the leading political and military story of this year—and also arguably the top economic story. Economic dimensions vary from the destruction of Ukraine’s productive capacity, the question of how it might get reconstructed, and the disputed effects of the sanctions imposed on Russia. The war has also at least partly been responsible for persistent inflation around the world this year.

How have sanctions affected the Russian economy? How is the Ukrainian economy holding up amid the war? And how might Europe change as a result of the crisis? Those are a few of the questions that came up in my recent conversation with Foreign Policy economics columnist Adam Tooze on the podcast we co-host, Ones and Tooze. What follows is an excerpt, edited for length and clarity.

For the full conversation, look for Ones and Tooze wherever you get your podcasts.

The war in…

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