Russia-Ukraine conflict: economic impact

What happened: Ukrainian drones have struck multiple logistics facilities of Russia's largest online retailer, Wildberries, in the past week, with the third attack occurring on Thursday. Simultaneously, the EU approved its 21st round of sanctions against Russia, targeting more individuals and entities, including the Russian bank Sberbank.

Market impact: These developments are driving a bearish sentiment in Russian markets. Wildberries' supply chain disruptions could lead to increased costs and potential service disruptions, impacting consumer confidence and retail sales. The EU sanctions, targeting key Russian financial institutions, are expected to further isolate Russia's economy and drive up borrowing costs.

What to watch next: Investors should monitor Wildberries' response to the drone attacks and any potential impact on its earnings. Additionally, the effectiveness of the EU sanctions will be closely watched, with the next key catalyst being the EU's potential move to cap Russian oil prices, currently under discussion.