Russia under pressure, financial risks across the region

The challenges facing Russia’s economy increased further this week amid reports of more restrictive fuel export bans, spillovers from Ukraine’s drone attacks on logistics firm Wildberries and further evidence of a deterioration in asset quality in the banking system. All of this raises the risk of a hard landing in the economy. Meanwhile, our latest EM financial risk indicators this week showed that our aggregate indicator of overall risk in Emerging Europe hit its highest in a decade, driven by higher banking risk (Turkey), currency risk (Turkey and Romania) and sovereign debt risk (Russia and Hungary). 

We’ll be discussing our latest EM Financial Risk Indicators in an online briefing at 10:00 ET / 15:00 BST on Wednesday 5th August. Register here.