As Russia's invasion of Ukraine is sending shock waves across Europe, Southeast Europe (SEE) is bracing up to bear the brunt of the economic, financial, and security consequences. The countries in the region are heavily reliant on Russian gas and for most of them Russia is a major trading partner and investor. For tourism-dependent Bulgaria, Croatia and Montenegro, it is also key feeder market. The sanctions on Russia and the indirect consequences of higher energy and raw material prices and supply chain disruptions are expected to impact businesses across the board, curbing production, further fuelling inflation and slowing down recovery. The onset of the Russian assault sent the regional stocks into a sharp fall, flights to and from Russia were discontinued, Moldova and Serbia suspended wheat exports, and Sberbank exited SEE. Stay with us for daily updates on how the war in Ukraine affects companies in SEE, how local markets react and what steps governments take to cushion the blow.
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