As the Ukraine war drags into another winter, both countries face escalating crises that threaten not only their internal stability but also the wider region. The ongoing conflict has severely damaged Ukraine’s infrastructure, with Russia targeting vital energy facilities in a strategy aimed at breaking the nation’s will to resist. Without a peace agreement, the war risks deepening the suffering for millions of Ukrainians and could destabilize both Ukraine and Russia, with consequences extending far beyond their borders.
Ukraine’s energy infrastructure, already crippled from previous winters, remains a key target of Russian attacks. The destruction of power plants, thermal energy facilities, and power grids is placing immense pressure on the nation as it prepares for another harsh winter. By mid-2024, Ukraine had lost nearly half of its domestic power generation capacity, and repairs have been slow despite international aid. A coordinated series of airstrikes this winter could cause mass blackouts, potentially displacing millions more Ukrainians as they flee freezing temperatures and power shortages. The International Energy Agency estimates that continued attacks could prompt a second exodus of refugees, primarily to Europe, straining already overburdened aid systems.
Last winter, millions of Ukrainians were left without heat or electricity, leading to widespread hardship. This year could be worse, as Russia has refined its missile strikes to target key infrastructure sites more accurately. If Ukraine cannot restore its power grid and protect it from further strikes, humanitarian experts warn of a catastrophic winter that could displace millions more civilians.
While Ukraine faces a humanitarian crisis, Russia’s economy is also showing signs of strain. The war has significantly hollowed out Russia’s key industries, especially oil and gas, which are crucial to its economic health. International sanctions and a sharp reduction in European demand for Russian energy have severely damaged the sector. Once a cornerstone of its economy, the oil and gas industry is now struggling to maintain output levels and revenue. Moscow’s pivot to Asia has not fully compensated for the loss of European markets, leaving its economy increasingly fragile.
At the same time, Russia’s military spending continues to skyrocket. The government is pouring vast resources into its war effort, which has driven inflation to alarming levels. Basic goods and services are becoming more expensive for Russian citizens, and as inflation erodes purchasing power, dissatisfaction with the government is growing. Experts warn that the economic pressures, combined with military losses, could spark internal unrest in Russia, especially if the war continues without a clear path to victory.
The war’s impact is not confined to Ukraine and Russia. The degradation of Russia’s economy is having broader regional consequences. Neighbouring countries that rely on Russian energy exports, such as Belarus and Central Asian nations, are now facing economic uncertainty. Furthermore, the weakening of Russia’s economic and military strength could alter the balance of power in Eastern Europe and Central Asia, potentially leading to greater instability in these regions.
Additionally, the war has reshaped global energy markets, with Europe diversifying its energy supply away from Russian gas and oil. This shift has accelerated the energy transition in many European countries, but it has also left Russia increasingly isolated on the global stage.
Without a peace agreement, the Ukraine war is set to continue its devastating toll on both countries and their wider regions. Ukraine faces another brutal winter, with millions of its citizens at risk of displacement due to failing energy infrastructure. Meanwhile, Russia’s economy is becoming increasingly fragile, driven by military spending and a shrinking oil and gas industry. The war’s ripple effects will be felt across Europe and beyond, as economic and humanitarian crises worsen.
A peace agreement and a political settlement remains the best hope for both nations to avoid further internal instability and to begin the long process of recovery. However, until such an agreement is reached, the suffering is likely to continue, with devastating consequences for the people of Ukraine, Russia, and the surrounding region.