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The Big Serge has a good overview of the RU-UA war. The TL;DR is that Ukraine has burned through multiple iterations of armaments and is now reduced to begging for active NATO matériel, hence Germany's reticence to send Leopards. One should understand that Europe's and even America's production capacities have atrophied badly over the decades. Losing hundreds of tanks - the number that Ukraine is asking for - isn't something you replenish within a year.
Serge's prediction that Ukraine will lose the war "gradually, then suddenly" seems plausible given Russia's attrition strategy. If we assume that Russia will win this war, then the question needs to be asked.. how much will actually change? Ukraine as a country isn't particularly important and the population is likely to be hostile to Russia, meaning that to integrate it into Russia proper will be difficult if not impossible.
I keep hearing hysterical rhetoric that the West must win this war or... something something bad. It reminds me of the flawed 'domino theory' that was used to justify the Vietnam intervention. While I don't think NATO will ever proceed towards direct intervention á la Vietnam, I can't help but think that too many of the West's elites have trapped themselves rhetorically where Ukraine's importance is overblown for political reasons (so as to overcome domestic opposition towards sending arms) and it has now become established canon in a way that is difficult to dislodge.
Ukraine is extremely important when it comes to base level goods like grain and iron. If Russia manages to capture just a decent chunk of Ukraine it could considerably strengthen any leverage it has over NATO and the EU. On top of that Russia as a government seems to be open to Asian immigration. It doesn't need to integrate Ukrainians, though it certainly can to an extent. Russia can just ethnically replace the population. Where the western elites have trapped themselves rhetorically as well.
Ukraine has little value from an economic standpoint. When you look at the amount that Ukraine produces, you'll see it's very little. Wheat for example: 20 million tons at $300/ton or just $6 billion/year. That's about 3% of the world supply or about 1% of the yearly revenue of Wal-Mart. If Ukraine production in all categories went to zero overnight, the market would barely even notice.
Possible counterpoint: Commodity prices went up because of the invasion.
Counter counterpoint: Commodity prices went right back down again now trade at pre-invasion levels.
...what?
Ukraine produces about 33 million tons of wheat, which is a bit over 4% of global production, but it exports about 19million tons, which is 9% of global exports. Taking nearly 10% of wheat exports off the global market is not 'market would barely even notice,' it's 'arab spring food riots,' because most of the most volatile countries in the world are not food self-sufficient.
Similar deal with other crops. Ukraine only produces about 3.5% of global corn, but what it does produce is 12% of the global export market. You're looking at even larger fractions of other items- 17% barley, 20% rapeseed, and around 50% of global export share of sunflower meal and oil. These are non-trivial shared of the global food market.
https://www.fas.usda.gov/sites/default/files/2022-04/Ukraine-Factsheet-April2022.pdf
This gets even worse when one considers the Pakistan flooding, which has wiped off a considerable share of the global export rice market off the market for this year.
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It's not about dollar revenue, it's about control over natural resources. Ukraine has some of the most arable land in the world as well as holding significant shares of the total amount of high quality iron ore reserves and various other metals. If Russia holds power of the lion share of these various resources in conjunction with China they can turn the western dominated 'economic sanctions game' on its head. Just like Russia did with gas.
*edit, I should have added that the geographic location of Ukraine is also very relevant, considering the ease of European access to said resources.
I'm almost positive I'm being heavily downvoted for being a contrarian (oh the irony!) but this is the kind of misconception that I'd like to counter.
Russia's gas supplies were quickly replaced after some painful short-term disruptions. The world has centuries worth of coal which Germany is so giddily burning right now. One commodity can be replaced with another.
Likewise, Ukraine's wheat production or rapeseed or iron isn't important. Reduce world exports 10% and the price will spike, followed by a demand response, and shortly thereafter a supply response, and pretty soon the price of wheat will be right back where it started. I'm heavily invested in commodities and have watched all this develop before and will again.
I don't see the misconception. The point being made is that in a war of commodities having control over resources is important. Controlling more of X is better than controlling less of X. It's not about the sky falling on the heads of those who get economic sanctions applied to them. Of course markets adapt to their conditions as best they can. But the more or less leverage you have, the more or less impactful the sanction.
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I think these tend to be short term issues. The world has plenty of arable land to feed itself it’s just that it cheaper to use ukranian land than unused land elsewhere. In the short term shutting down ukranian production means big price spikes because hungry people pay what it takes. In the long term you just start producing elsewhere on lower quality land and prices are 5-10% higher than before.
Maybe, but spike in food costs and permanent 5% increase is not "the market would barely even notice". And that may be enough to trigger new waves of migration counted in tens of millions.
"wheat is 10% more expensive" is noticeable for people in USA or Europe but they will at most complain and may push them to vote differently. It is different where people spend 50% of budget on food where that may be enough to trigger riots, famine and mass migration.
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The world has plenty of arable land and is also a very small place when Russia and China are throwing their weight around. The argument here isn't that the sky will fall. The argument is that the leverage the west has over the rest gets weaker. Potentially getting turned on its head.
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