Economic collateral damage of Ukr invasion

Russia has become a growing part of European trade. Exports from Europe to Russia are blocked by the sanctions due to Russia’s invasion of Ukraine. Manufacturers in Europe are dependent on components, such as auto parts, sunflower oil, bottles and aluminum cans which are made in Ukraine.

The economic collateral damage is described in this article.
https://www.nytimes.com/2022/04/05/business/europe-exports-r…

The European Commission authorized companies affected by sanctions against Russia to receive up to €400,000 ($441,000) in state aid. European businesses and consumers are getting government rebates at the gas pump and in their energy bills.

“The longer the war lasts, the higher the economic costs will be and the greater the likelihood we end up in more adverse scenarios,” Christine Lagarde, the European Central Bank chief, warned on Wednesday. On the same day, Germany, Europe’s largest economy, slashed its forecast for growth in 2022 by more than half, to 1.8 percent.

Anyone who has investments in an international stock fund should check whether the holdings will be affected by this.

Wendy

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On the same day, Germany, Europe’s largest economy, slashed its forecast for growth in 2022 by more than half, to 1.8 percent.

That seems optimistic. The growth estimates were already coming down before the war. And we won’t talk about what happens if China hits the Covid wall…

DB2

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DB2,

Thanks interesting input.

Add what happens if the swaps market gets roiled by the Chinese banks.