Recent news have been flooding the news, our social media feeds etc about this activities happening in Eastern Europe which is happening now in Ukraine against Russian aggression. Although the Philippines is faraway from the possible conflict, there are 342 Overseas Filipino Workers who have left Ukraine and were affected with the conflicts as they flee for their safety to the Philippines or have settled temporarily in other European countries not affected with the conflict.
Russian Economic ties with European Union
Russia is a one of the natural gas supplier to the members of the European Union countries, particularly with Germany. If a possible conflict is happen then diplomacy of all the belligerents will be affected in terms of investments and the broken supply chain with these nations. Ukraine and Russia supplies agricultural products to Western Europe, the Middle East and other nations particularly wheat is a staple diet among Europeans.
The United States of America and other members of North Atlantic Treaty Organization (NATO) have forums discussing their possible action of conducting back channel negotiations or possible swift action against Russia. NATO members have donated tons of military equipment and aid to Ukraine in order to fend the invaders.
The winds of war have been blowing since Russia's military adventurism by invading South Ossetia and Abkhazia in the country Georgia in 2008 during the Beijing Summer Olympic Games and then separation of ethnic Russian speaking Ukrainians in the Donbas and Crimea located in the Eastern Ukraine in 2014. Russia is feeling threatened by the addition of former iron curtain (Soviet bloc) countries that have joined European Union like Poland, Romania, Lithunia, Latvia and Estonia because of the expansion of the NATO surrounding the Russian Federation.
The Old Ukraine and Russian Historical Connection
Going back in history, modern Russian language and culture came from Kyiv Rus region where the modern city of Kyiv and capital of Ukraine is. Russians see Ukraine as part of their region sharing the same culture of these Slavic neighbors after their separation from the iron curtain as it became an independent nation post-Union of Soviet Socialist Republics (USSR) in 1991. Putin's view of reviving the old empire with the intention of annexing the whole country has been seen all over the news with the attempts of capturing the capital town of Kyiv.
Is Philippine Real Estate Affected with the War in Ukraine and Russia?
Yes, the current conflict in Eastern Europe have a big dent not only to the Philippine economy but the whole world as the two countries are suppliers of agricultural products. Ukraine is the top supplier of sunflower oil and flour followed by Russia and then Turkey as major supplier of flour in the whole world. On the other hand, Russia is the number producer also of fertilizer for agricultural purposes.
As expected, petroleum products have risen in the past few weeks in the Philippines as prices of commodities from foods, transportation and other cost have risen. Russia is among the top suppliers of natural gas This in turn causes interconnected disruption in supply chain and logistical problems including the world's factory inside China. Prices of construction materials have risen starting in 2021 with that residential real estate prices started to rise up to 5% as mentioned in a Bangko Sentral ng Pilipinas (BSP) report.
In the past few weeks, some of the listings we have had appreciated in value particularly land (raw land, agricultural and others) because of the speculative mindset of the owners who wish to dispose asset property for other use and purpose by would be buyers.
About the Writer
CRB Benedict Baluyut is a professional real estate broker, real estate appraiser and associate of C. F. Baluyut Realty. He is currently the Vice President for External Affairs, Real Estate Brokers Association of the Philippines, Inc. (REBAP) - Pampanga Chapter. You can get in touch with him at https://www.cfbaluyutrealty.com.
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