Economic Repercussions of the Russia - Ukraine Crisis on the European Economy (A Geopolitical and Sectoral Analysis (

Abstract

This study examines the economic impact of the Russia–Ukraine crisis on the European economy during the period 2014–2024, focusing on five key sectors: finance, trade, energy, investment and economic growth, and tourism. The study adopts a descriptive-analytical approach supported by comparative analysis and a systematic review of peer-reviewed studies and reports issued by international institutions.

The findings indicate that the crisis caused severe volatility in financial markets, reduced investor confidence, and disrupted trade flows, particularly with Russia. The European energy sector revealed vulnerabilities due to dependence on Russian fossil fuels, which accelerated the transition toward renewable energy and the diversification of supply sources. Economic growth slowed markedly, with GDP growth declining from (3.5%) in 2022 to (0.4%) in 2023, followed by a partial recovery to around (1.0%) in 2024. The tourism sector also experienced a sharp decline in visitor numbers, particularly Russian tourists, resulting in substantial revenue losses and reductions in employment opportunities.

The study concludes that the crisis produced deep and interconnected effects across all economic sectors, highlighting the need for comprehensive risk management strategies, diversification of trade and energy sources, and strengthened investment policies to enhance resilience to future geopolitical crises.