The Russian Invasion and the Financial Impact

The financial impact

At Prato Capital, we are wealth managers. Our primary and professional concern is any impact generated by economic and geopolitical events on our clients’ portfolios and the long-term goals they have set in their financial plan.

Very strong economic sanctions have been imposed on the Russian government, Russian leaders, and many Russian businesses. Looking at how the markets react to these sanctions and how the global economies cope with any possible disruptions from the war is just part of how we gauge any potential impact on our clients.

Some Economic Background
Ukraine’s economy is ranked as the 56th largest in the world by GDP. For perspective, that is slightly less than the GDP of Washington, DC. The main exports from Ukraine are steel, coal, petroleum and agriculture products like wheat and corn. Ukraine is the 5th largest exporter of wheat globally. Most of these products are exported to Turkey and the former Soviet states of Russia, Belarus, and Kazakhstan.

Russia’s economy is larger as the 11th largest in the world. It is still smaller than the states of California, Texas and New York and is about half the GDP of the United Kingdom. The main exports from Russia include petroleum, minerals, wheat, and steel. Most of these are exported to China and other European countries.

For many reasons, our hope is that this conflict is short. Most importantly, the sooner a conflict stops, the less suffering and loss of life. Economically, if the conflict is short, it may minimize the impact of possible cost increases and shortages due to the economic and financial sanctions announced against Russia.

To continue reading the article, click here

To learn more and follow us on social media, visit: https://linktr.ee/pratocapital