Consequences of the energy measures derived from the war in Ukraine on the level of prices of EU countries

Abstract

The war in Ukraine and the sanctions imposed by the European Union on Russia, which is one of the largest exporters of gas and oil, are currently causing a serious energy crisis. The aim of our work is to analyze the effects that the rise in fossil fuel prices, due to the embargo on Russian gas and oil resulting from the war in Ukraine, is having on the productive sectors of European economies. We apply input-output methodology, which allows to determine and analyze the impacts experienced both in production and prices, when there is a change in an exogenous variable. The results show that not all countries and sector were affected in the same way. In fact, there are significant differences that should be considered. European countries should keep inflation under control, without social welfare losses.