How Beer Prices Might Spike Due to Russia-Ukraine Conflict

by Madison Miller
Photo by: Cate Gillon/Getty Images

As the violent conflict between Russia and Ukraine grows more intense each day, countries around the world are going to feel the shockwaves of this event.

For example, countries surrounding Ukraine, such as Romania and Poland, have had Ukrainian citizens seek safety within the confines of their borders. Meanwhile, the U.S. has gone ahead and banned Russian planes from U.S. airspace, something several other countries have also done. Ukraine has the full support of all the countries in NATO. The usually-neutral Switzerland has also directly stated support for Ukraine during these hard times.

In addition to showcasing their aid and support, these countries may also see a direct impact on their own economies. That could include price increases for certain products, as well.

According to Fox 8, we could see price increases in the beer industry. Ukraine is actually one of the top five producers of barley, which is one of the key ingredients used to make beer. Now, different brewers will go through a decrease in barley due to the invasion of Ukraine. As the demand for beer remains the same, but the supply decreases, we will likely see prices increase.

It’s not going to be a massive increase, however. The large beer manufacturers are not expecting any kind of huge setback. Some smaller breweries are expecting to feel the weight of this more. The result will be a 50 cent or a dollar increase per beer.

Other Impacts Ukraine is Having on the U.S.

One of the biggest impacts can be seen in the prices of oil and natural gas.

According to The Wall Street Journal, crude prices were actually headed toward their biggest one-day rise in almost two years. This is because a self-imposed embargo on all Russian oil took hold. The brent-crude futures, which is the global benchmark for this, rose 8.6% this Tuesday.

In response to the war, the International Energy Agency release 60 million barrels of oil from emergency reserves. Half of that is going to the U.S. Strategic Petroleum Reserve. The rest goes to allies in Europe and Asia.

The White House said in a statement that this “is another example of partners around the world condemning Russia’s unprovoked and unjustified invasion of Ukraine and working together to address the impact of President Putin’s war of choice,” according to CNN.

Meanwhile, the strength of this invasion is increasing each day as we enter day number seven. Russian forces have started attacking areas with higher rates of civilians. Thousands of Ukrainians are forced to flee the country.

“During this time, we have truly become one and forgave each other. We started loving each other. We help each other … are worried for each other,” Ukrainian President Volodymyr Zelenskyy said in a televised address, according to USA Today.

As of now, Ukrainian emergency services is saying more than 2,000 people are dead. Russian troops have killed hundreds of civilians, including children. Putin is now technically classified as a war criminal.