The ongoing armed conflict between Russia and Ukraine is burning news around the globe. This war has already started affecting global diplomacy and the lives of the people of Ukraine and those living in the country. Consequences of such a large war will be long lasting on economics, politics as well as technology. However, there are already several effects of the Russian-Ukrainian war on technology.
How is the Russia-Ukraine war taking a toll on technology?
When there is an environment of tension in the globe, even the smallest incidents affects the technology and stock market. While technology is a useful tool for development, it can also be used for destruction. Here are the possible effects of the Russia-Ukraine war on technology.
1. Restriction on tech goods
The US and other countries have imposed restrictions on the import of tech goods. Fear of these goods being used in dangerous ways has forced this action. Right now, all the countries are at a one-arm distance from Russia. However, they are doing their best to stop the war by choking off the import.
2. Terrifying tech sell offs
Russia’s invasion of Ukraine has caused a ‘tech selloff‘, said technology analyst Daniel Ives of Wedbush Securities. “The risk-off environment that has been in effect so far in 2022 will now be significantly exacerbated by this geopolitical shock event…,” said Ives.
3. Shortage of Microchips
There was a shortage of microchips globally in 2021. The problem was expected to settle down in 2022. As part of the sanctions, US has threatened cutting off supply of microchips to Russia. However, it is notable that both Russia and Ukraine supply key materials needed for manufacture of microchips. This includes neon, palladium and platinum.
4. Expansion in battlefield through cyberspace
This war is not limited to a traditional battlefield but has taken form in cyberspace. Firstly, Russia has the potential of pairing with robotic weapons and high precision missiles all due to the technology.
Additionally, there is a separate war engaged on Twitter as people are opposing the act of war by Russia. In fact, some researchers who were sharing information through an open-source intelligence or OSINT said that their Twitter accounts were suspended. This fell on the social media giant and people called it an “absurd decision by Twitter”. However, Twitter later said that it had mistakenly suspended accounts that were posting about Russian military movements.
5. Influence of the war on Stocks
The international stock market has already been affected by the war. Tech giants such as Apple, Amazon, Alphabet, Microsoft and Facebook-parent Meta opened to stock dips on Thursday.
Following companies witnessed stock fluctuations when the markets opened on Thursday.
- Apple shares were down by 4%
- Amazon shares were down by 1.2 %
- Alphabet shares were down by 1%.
- Microsoft shares were down by 1.5%
- Meta shares were down by 2%
Experts say that investors should prepare for tech stock fluctuations. We can already predict the rise of inflammation domestically and internationally.
The worsened outcome of the war is going to affect domestic and international markets.
What experts say
Tradingo Founder Parth Niyati believes that there will be high volatility over the next month due to this crisis. In the international markets, however, investors are eyeing safe havens as global stocks tumbled and oil prices surged due to the Ukraine issue.
How will the crypto market react
The crypto market has plunged due to the Russia-Ukraine war. According to reports, the price of Bitcoin fell 8.12 per cent in the last 24 hours; Ethereum was down 13.28 per cent.
Market cap slid to as low as $1.57 trillion, losing almost 9.66 per cent in the last 24 hours. After the announcement of Russia’s invasion of Ukraine, it is being predicted that Russia could use cryptocurrencies to blunt the impacts of sanctions through bypassing control points.
The crisis is not just being faced by a country or two. Within 24 hours of invasion, the technology economy has faced immense pressure. Effects on technology of the Russian-Ukrainian War is only a fraction of the impact. The human impact is much more grave. We hope a middle way is found out as soon as possible by both countries.