The greatest economic sector in the Maldives is tourism with Russians being one of the highest populations to visit the country. In one survey by Michigan State University, it was estimated that 28% of the Maldives’ GDP is provided by the tourism market. With a loss of these tourists, the consequences of the Russian invasion of Ukraine will be almost entirely represented by lost potential revenue in the Maldives. In fact, on February 22nd of 2022, Russia had the largest market share in the Maldives’ tourism according to the Ministry of Tourism.
On the other hand, conflicts with fossil fuels, wheat, refugees, and supply chains will affect the Maldives in an unusual way compared to other countries like the U.S, for example. The main food sources of the Maldives are local, and since the Maldives are made up of archipelagic islands, those products are primarily fish and coconut products.
Most war refugees are fleeing to Europe, leaving the Maldives as a temporary get-away for the very wealthy.
This creates its own problems, as Russian oligarchs are using the Maldives’ maritime waters as a shelter in their yachts to avoid sanctions. By obscuring their location or keeping the yachts in international waters, the Russians are able to continuously dodge sanctions. Furthermore, the country is not capable of seizing yachts, or most vehicles for that matter, unless a local crime has been committed.
The Maldives relies heavily on imports when it comes to fossil fuels with no known national storage. The main source of oil and gas for the Republic of the Maldives is from India which already reduces the impact which other countries are experiencing as they reduce imports of Russian oil. That being said, the Maldives are also focusing on reducing their unsustainable fuel sources since their country is at such a risk regarding climate change and rising sea levels. However, the rising prices for oil also have an impact for those who can afford travel to the Maldives, once more damaging their tourism market.
Maldivians have been trapped in Ukraine and Russia since the war broke out, which has led to arduous efforts to extract the citizens from the war zone. The Maldives were also one of the 141 countries at the UN to condemn Russia for its invasion of Ukraine. But as far as measures go, the Maldives appears rather powerless as its main focus is the recovery of its economy.
