The Steep Cost of Sanctions for Europe and Russia

A convoy of Russian armored vehicles moves along a highway in Crimea on Jan. 18, 2022. AP Photo

Commentary

The escalation of tensions in Ukraine has reminded us of something many investors seemed to have forgotten: geopolitical risk. Sanctions and the inevitable drop in trade have proven to generate a significant negative impact on the different economies involved. We know from the 2014 Ukraine crisis that the economic hit is severe and persistent.