The impact of conflict in Eastern Europe on the economic situation of the Balkan countries

Abstract

Like the pandemic, this crisis shows how dangerous it is to rely on imports and to depend on anyone from the outside in general. Self-sustainability to the greatest extent possible and diversification of economic relations is necessary for any economy, so that the country does not depend on imports for most of its needs, nor does it depend on only one or two markets for the placement of exports. The global effects of the war in Eastern Europe were certainly felt by the Balkan region, but not all to the same extent. Serbia, as a large producer of cereals and food in general, certainly has a much better position in this area compared to Bosnia and Herzegovina and other countries in the region, which depend too much on imports. Also, Serbia and Croatia have their own production and processing of oil and gas, which cover a certain part of their needs. Croatia, as a member of the European Union, has from that side help and access to European funds to mitigate the negative effects of sanctions and the crisis. An important factor is also the attitude towards sanctions, i.e. whether a certain country will introduce sanctions or not. The events surrounding Ukraine clearly show how important it is for countries, especially smaller ones, to rely much more on domestic production and their economic resources. The effects of the situation in Eastern Europe relate to the energy crisis, the continuation of the trend of price increases, as well as the loss of the Russian market for numerous companies.