Some of the immediate global effects of the Russia-Ukraine crisis are within commodity supply chains, particularly related to food and energy, with potentially long-lasting social and institutional implications.

[Free to read upon sharing contact details] Russia’s invasion of Ukraine will weigh on growth in G7 economies in 2022 through three main channels: the impact of Western sanctions, higher global prices for commodities and supply chain disruptions. This global economic outlook report analyses which countries in the G7 will most heavily feel the effects of the conflict.

Russia and Ukraine together account for 25-30% of global wheat production. Sanctions against Russia and the crippling of Ukraine’s agriculture industry have sent the price of wheat and various other commodities skyward and disrupted supplies in the global food production chain.

The Ukraine crisis presents a myriad of risks to the sector – direct underwriting losses, rapidly rising prices, slower economic growth, financial market volatility and the potential for asset shocks – that are not altogether different to what occurred during COVID-19 and the financial crisis. But with direct investment and underwriting exposures limited overall, and with second order effects in financial markets currently manageable, the sector is strongly positioned to support clients through this period of uncertainty.