ECONOMIC AND MARKET OVERVIEW
Over the past fortnight we have seen the Russian invasion of Ukraine escalate to unexpected levels, where Russia is now at war with Ukraine and innocent civilians are being killed. This is heartbreaking to watch, especially as negotiated ceasefires are being reneged on. We think one of the main underestimations across the globe is the level to which Russia, or more specifically Putin, has been prepared to go.
In our last communication, we commented on how sanctions are typically a blunt tool for influencing behaviour as they take time to have an impact. What has been remarkable to witness is the unified response by America, Europe, the UK and parts of the rest of the world. We are seeing an unprecedented response, where the sanctions have been extensive. In addition, Germany has for the first time since World War II agreed to supply military arms to another country. This is a clear indication of how severe the situation has become.
