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Russia-Ukraine Conflict: Long-Term Risks Emerging

Nearly six months into Russia’s invasion of Ukraine, the conflict’s long-term impact is coming into focus. The conflict, which began on February 24, prompted many multinational corporations to voluntarily exit or sever business ties with Russia and triggered a broad set of international sanctions. Now, much of the focus has shifted from specific developments in Ukraine and Russia to economic inflation globally and a fracturing of the geopolitical order.

Businesses and governments should not lose sight of the indirect consequences of the Russia-Ukraine conflict, which may persist for a long time. This includes the continuing risk arising from the large volume of new economic, financial, and trade sanctions and the global impact arising from the reduced availability of key commodities such as oil, fertilizer, and grain.

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