The Ukraine-Russian conflict, an ongoing violation of international law and territorial integrity since 2014, heavily affected economy in the European Union. Within this thesis, the paper reveals the internal nature of the EU's economic difficulties in respect to the Ukraine- Russia crisis, putting emphasis on the EU policy-making, economies, and regional security. The analysis is principally concerned with the course of the conflict and the outcome of it for all the actors of the geopolitical struggle, the competitive situation of the EU and Russia in the Ukrainian context, and the major obstacles which the EU is encountering due to the long-lasting geopolitical dispute. The thesis further considers the central role of the EU and Russia in the strategic competition for influence over Ukraine, including the fact the conflict gradually morphed into a larger contest for the geopolitical supremacy over Eastern Europe. Addition to this, it reviews on the off chance that Russia has been applying economic sanctions, the general response to the crisis and what the broader implications are on the foreign policy framework of the European Union concerning its security. The present research comes to an end with a conclusion that the economic effects of the Ukraine-Russia war lead to the transformation of the European Union economic policy and strategic positioning that has placed long-term pressure issues on internal unity and external relations of the union