The War in Ukraine: Economic impact on Asia

Russia’s invasion of Ukraine in February 22, 2022 was a major shock for the global economy but also for Asia. Our paper reviews its impact on Asia through different channels, especially trade and finance of. We conclude that the trade and financial impact on Asia, and in particular on China, are much milder than for Europe. That said, the indirect impact, via elevated commodity prices and supply chain disruptions, has clearly had a toll on Asian economies considering their dependence on imports of fossil fuels. We also discuss China’s stance on the conflict, which may be key for its evolution down the road.