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What the numbers say: The value of goods exported from Ukraine to Russia dropped from a peak of $13.48B in 2013 to $4.2B in 2015. In the following years, Ukraine's exports to Russia remained relatively stable until they plummeted gain in 2022. Relevance: The first drop in Ukraine's exports to Russia followed Moscow's annexation of Crimea in 2014. The second dip occurred when Russia invaded Ukraine in 2022. The war has destabilized many sectors of the European economy, including its energy and grain markets. While the conflict increases the risks involved in sourcing products from Ukraine, the reconstruction of Ukraine's economy may also generate investment opportunities. Brands that should care: Companies that source products from Ukraine may benefit from diversifying their supply chain to avoid war-related disruptions. However, international firms may also consider investing in Ukrainian infrastructure and property to take advantage of post-war reconstruction efforts. |
