RUSSIA AND UKRAINE TERRITORIAL DISPUTES: ITS ECONOMIC IMPACTS ON EUROPE-A CASE STUDY OF GERMANY

Abstract

The territorial dispute turned a full-scale war in 2022 between Russia and Ukraine has deep-rooted impacts not only on the states, but also on Europe. The paper explores the economic effects of the conflict on Europe and then takes a closer look at Germany, one of Europe's largest economies. They used Dependency Theory as a lens to examine economic vulnerabilities from the perspective of Germany´s historical dependence on Russian energy. These efforts have been questioned by the war, which disrupted energy supplies and created inflationary pressures, and requiring major changes in trade and industrial policy. It goes on to assess how Germany addressed the crisis, most notably its turn to renewable energy and attempts to diversify energy sources. The analysis of this case study proves to us that geopolitical conflicts can return the economic stability of highly developed countries into a fragile appearance, while global economic systems can be managed from the same center in a crisis period