Same shock, different effects. EU member states’ exposure to the economic consequences of Putin’s war
- The economic knock-on effects of the Russian invasion of Ukraine are going to be felt throughout Europe. While the overall economic fallout is still difficult to predict, the impact will differ from country to country. This brief takes a very first look at divergences in exposure, focusing on direct trade links, potential costs of energy dependence on Russia and vulnerabilities towards rising energy prices more generally. It shows that the EU’s member states’ vulnerability to the economic consequences of the war is very unevenly distributed. To cushion the economic blow and ensure political unity, the EU will likely have to organise some sharing of the economic burden of this crisis.