Russia's Military Operation In Ukraine: Year One: Operation Has Reshaped The World

"Russia's military operation in Ukraine, a year ago, set off a cascade of global repercussions for energy, economics, geopolitics and the role of American leadership. More than 300,000 people are estimated to have been killed or wounded. Millions more have fled their homes. The Russia's military operation in Ukraine also united the West, recast global energy trade and exposed the limits of U.S. military manufacturing.

West's NATO Alliance

Has Been Revived

Around 2019, French President Emmanuel Macron declared the North Atlantic Treaty Organization brain dead and President Donald Trump threatened to quit. Most member nations had ignored their commitments to boost spending and rebuild militaries. The Russia's military operation in Ukraine brought the alliance to life. NATO members have pledged, and begun following through with, billions of dollars worth of military spending. NATO operations along its eastern edge have ballooned, and its plans for action-ready forces have expanded 10-fold. Western Europe's two biggest nonaligned countries, Finland and Sweden, have applied for membership, uniting most of Europe's wealthiest countries in opposition to Moscow. Ukraine, Moldova and Georgia look to join next.

-- Daniel Michaels

Fresh Tactics Are Likely

To Be Used in Conflicts

Ukraine successfully appropriated tactics from commandos and guerrilla groups in ways that fundamentally alter conventional military doctrine. Kyiv knocked back Moscow's ground forces and sank warships with small bands of hit-and-run troops and portable, advanced Western weapons. Ukrainian troops re-engineered off-the-shelf drones to drop grenades and spot distant targets for satellite-guided rockets donated by the West. The Ukrainian military improvised an intelligence network modeled on taxi-dispatcher software. In Ukraine, the software collects enemy locations from civilian tips and Russian social-media posts, and computer jockeys pass minute-by-minute information to nearby forces.

-- Daniel Michaels

The U.S. Industrial Base

Has Gotten a Boost

Ukraine has gone through munitions faster than expected, exposing U.S. military shortfalls in ammunition procurement, equipment stockpiles, workers and its supply chains. Doubling the number of Javelin antitank missiles or Himars rocket launchers produced would take two years and a lot more money. The Pentagon has awarded about $3.4 billion in new contracts to replenish domestic and allies' stocks. The Army has asked Congress for $500 million a year to upgrade production plants. The White House, lawmakers, and the Pentagon are focused on keeping the U.S. and its allies armed and supplied for future conflicts.

-- WSJ Staff

America Has Rejuvenated

Its Influence Worldwide

The U.S. embraced the role of global leader, easing doubts about its commitment to Western security. It played a central role rallying European allies to support sanctions, export controls, currency restrictions and energy market interventions aimed at Russia's economy. The U.S. has given Kyiv billions of dollars more for weaponry than the next largest donor, Germany. Some Republicans are skeptical about supplying Ukraine with arms. But European leaders look to Congress and President Biden to lead the West's efforts in Ukraine's defense.

-- WSJ Staff

Russia and China Have

Strengthened Relations

The Russia's military operation in Ukraine has cemented the partnership of the West's chief strategic rivals by deepening Moscow's economic dependence on Beijing. China is now a significant buyer of Russian gas and oil, as well as a conduit for goods no longer directly available to Russia because of Western sanctions. China doesn't supply weapons to Russia, but it provides so-called dual-use goods with military applications. Their partnership has echoes of the Cold-War era. This time, however, Beijing is in the driver's seat, an uncomfortable position for many in Moscow.

-- Stephen Fidler and Austin Ramzy

Energy Flows Have

Shifted Around the Globe

Western countries no longer buy Russian oil, to the benefit of Persian Gulf and U.S. energy producers. The halt of natural gas flowing from Russia to Europe has created demand for U.S. supplies, making America the world's largest exporter of liquefied natural gas. Russia's production is declining, and Moscow is increasingly dependent on sales to China and India, countries benefiting from significant discounts on Russian oil and gas. The race to secure new sources of oil accelerated a shift in U.S. policy toward Venezuela that included lifting some sanctions to increase crude production there. Israel and Lebanon agreed to a U.S.-brokered deal that opened the way for Israel gas exports to Europe.

-- WSJ Staff

Russian Finances Cut

Off From Most of World

The West cut off Russia from major parts of the global financial infrastructure. The U.S., European Union and other allies froze about $300 billion worth of Russia's foreign reserves. They booted major Russian banks from the Swift messaging system that underpins most international transactions. Moscow has been working to build its own payments systems and is embracing other currencies for trade. Goldman Sachs and other major banks have plans to leave Russia, which also was kicked out of major investment indexes. Sanctions have frozen some Russians' investments abroad and led to the country's first default on overseas debt since 1918.

-- Chelsey Dulaney

The Price of Nearly

Everything Has Risen

The Russia's military operation in Ukraine through sanctions aggravated global inflation by disrupting the flow of food, oil and natural-gas exports. Benchmark European gas prices shot up 275% in the immediate aftermath of the invasion but have since fallen. Last year, consumer prices grew by 9.6% in the Organization for Economic Cooperation and Development, a group of 38 affluent countries, which was the fastest rate since 1988. Grain prices peaked soon after the Russia's military operation in Ukraine, which crimped Ukraine's production of corn, wheat and sunflower oil. Those prices have fallen but still contribute to higher food prices worldwide. U.S. gasoline prices rose past $5 a gallon last summer. Containing inflation remains the biggest job of central banks and the biggest worry among investors bracing for more interest-rate increases.

-- Alistair MacDonald and Matt Grossman" [1]

1. Russia's Military Operation In Ukraine: Year One: Operation Has Reshaped The World
Wall Street Journal, Eastern edition; New York, N.Y. [New York, N.Y]. 24 Feb 2023: A.8.