Finance Monthly - May 2022

n 24th February 2022, Russia launched a full-scale military operation in Ukraine. This followed months of hostile activity from the world’s largest country, which escalated on 21st February when Russia proclaimed the Donetsk and Luhansk oblasts of Ukraine, two regions in eastern Ukraine, to be independent and ordered troops to enter both. In response to the invasion, nations from across the globe have imposed a range of sanctions on Russia. Britain, Japan and the US have sanctioned billionaires and major financial institutions with close links to Russia, while Germany has frozen the Nord Stream 2 gas pipeline project, which had been set to ease the energy price crisis. With the end of the conflict not yet in sight, as countries around the world impose sanctions on Russia and peace talks continue with limited signs of progress, it appears that the crisis will have a major impact on commodity prices. Prices of commodities set to rise in the short term So far, the conflict has resulted in large-scale panic buying of key commodities coming from Russia and Ukraine, which has caused a sharp upward rally in commodity prices. An example of this can be seen when looking at nickel prices. Finance Monthly. Bus i ne s s & Economy 31

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