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Interconnections of global economy hard to unravel

The economic and market ramifications stemming from the Russian invasion of Ukraine illuminate the interconnectedness of the global economy, even when direct relations between countries are limited.

Why it matters: The U.S. doesn’t do much business with Russia — at least compared with more significant trading partners like China and Canada — but the chain-reaction effect of the war shows how there’s no escaping economic tumult in the event of seismic geopolitical instability.

  • The war has sent shockwaves through the markets for oil, gas, wheat and nickel — all products made in high volumes in Russia or Ukraine — as prices soar due to fears of disruption or actual supply issues.

State of play: The U.S. doesn’t import much petroleum from Russia, but the Biden administration’s decision today to ban imports of Russian oil and gas still marks another key step in the excision of a previously significant player from the…

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