NICOLE LOUISE A.

VILLANAS

I-BMA

An ANC episode hosted by Michele Ong, International Investment Banker Stephen

Cuunjieng talks about the impact of the Russia-Ukraine conflict on the global
economy. The world economy has been shaken by a week of fighting in Ukraine
as quick-fire Western sanctions isolate Russia, devalue its currency and financial
assets, and drive up the cost of food and oil.

According to figures from the World Bank, Russia's $1.5 trillion economy is the
eleventh largest in the world. It was doing brisk business in energy a week ago,
shipping millions of barrels of petroleum a day with the aid of significant oil
corporations. Russia was seeing strong sales of Western items, and investors
were providing money to its businesses.

Oliver Allen, a markets economist at Capital Economics, wrote in a research note

that "Western democracies have surprised many by following a strategy of placing
strong economic pressure on Russia by virtually blocking it off from global financial
markets."

"It is pretty simple to understand how the latest sanctions could be only the first
steps in a severe and long-lasting severing of Russia's financial and economic
links with the rest of the world," the author writes. "If Russia continues on its current
path.

Global geopolitical turmoil is altering demand and raising the risks associated with
trade and investment. The production, commerce, and employment growth rates
worldwide will continue to be impacted by a protracted conflict between Russia and
Ukraine. Major economies will keep tightening their monetary policies to combat
excessive inflation in the face of rising oil and natural gas costs.