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Global confidence in Putin's leadership abilities have been low for several years.
Global confidence in Putin's leadership abilities have been low for several years.
Image: Sansha Packirisamy, Economist at Momentum.

Russia’s invasion of Ukraine is the focus of this edition of the Business Day Spotlight. 

Our host Mudiwa Gavaza is joined by Sanisha Packirisamy, an economist at Momentum Investments.

The discussion focuses on the possible impact of Russia’s invasion of Ukraine, which started at the end of February, on the global economy and SA.

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Packirisamy says trade with the two countries makes up less than 1% of SA’s GDP, particularly with Ukraine which makes up a small piece of the pie. Despite that fact, she says the most immediate effect will be on oil markets, which have already been rattled.

Brent Crude is up about 80% over the past year as economic activity picked up after the devastation caused by Covid-19. That has been further boosted by Russia, one of the world’s largest producers, invading Ukraine, tipping the price beyond $100 a barrel for the first time since 2014. This is likely to lead to higher fuel prices for a country such as SA, which imports most of its oil.

Turmoil between Russia and Ukraine will undoubtly upend the global oil and gas markets
Turmoil between Russia and Ukraine will undoubtly upend the global oil and gas markets
Image: Sansha Packirisamy, Economist at Momentum.

Rising oil prices are further stoking fears about inflation, which central banks around the world have been working to curb since the end of 2021. 

 

Topics of discussion include: the impact of Russia’s invasion of Ukraine on the global economy and SA, how the conflict may affect financial markets, risks for emerging markets, the effect of rising oil prices on the economy, the response of various governments and organisations to Russia’s actions, and an economic outlook in light of the conflict. 

Engage on Twitter at #BDSpotlight

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 Business Day Spotlight is a MultimediaLIVE production.

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