Underlying index: MOEX Russia Index

Underlying index: RTS Index

The ๐Ÿ‡ท๐Ÿ‡บ Russia – ๐Ÿ‡บ๐Ÿ‡ฆ Ukraine war, which began in February 2022, has had significant impacts on the global economy and financial markets. In response to the conflict, the ๐Ÿ‡บ๐Ÿ‡ธ United States and its allies, including the ๐Ÿ‡ช๐Ÿ‡บ European Union, the ๐Ÿ‡ฌ๐Ÿ‡ง United Kingdom, ๐Ÿ‡จ๐Ÿ‡ฆ Canada, ๐Ÿ‡ฆ๐Ÿ‡บ Australia, ๐Ÿ‡ฏ๐Ÿ‡ต Japan, and ๐ŸŒ NATO members, imposed extensive sanctions targeting key sectors such as finance, energy, defense, and technology. Major Russian banks were removed from the SWIFT international payment system, restricting cross-border transactions and limiting access to global capital markets.

These sanctions, coupled with the withdrawal of multinational corporations from Russia, led to capital flight, currency volatility, and a sharp decline in foreign investment. The Russian ruble initially plummeted before stabilizing through stringent capital controls and emergency monetary policy measures. Russiaโ€™s stock market experienced a steep decline, with trading on the Moscow Exchange temporarily halted.

On a global scale, the war caused supply disruptions, particularly in energy and agricultural commodities, as both Russia and Ukraine are major exporters of oil, gas, wheat, and fertilizers. This led to rising inflation, increased market volatility, and a reshaping of supply chains. Investors shifted towards defensive assets, while economic forecasts were adjusted downward amid growing uncertainty.

The ongoing conflict continues to reshape geopolitical dynamics and financial markets, with enduring effects on global trade, investment flows, and economic stability.



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