News

Law

Asset Management

Investment Banking

Wealth

Hedge Funds

People

Newsletters

Events

Lists

Asset Management

Fund managers brace for Ukraine and Russia fallout: ‘The market is still yet to price this in’

A full-blown war will be averted, investors say, but expect tensions and market volatility to rise

Smoke rises from a power plant after shelling outside the town of Schastia, near Lugansk on 22 February. The movement of Russian troops into Ukraine sparked a sharp drop in global stock markets
Smoke rises from a power plant after shelling outside the town of Schastia, near Lugansk on 22 February. The movement of Russian troops into Ukraine sparked a sharp drop in global stock markets Photo: Aris Messinis/Getty Images

Fund managers are bracing themselves for the prospect of prolonged tension between Russia and the Ukraine, with some predicting the crisis will spark military conflict — a scenario that could stifle economic growth in the West and spur even higher inflation.

Russian President Vladimir Putin ordered troops into Ukraine on 21 February, after saying he would recognise the independence of two Russian-led breakaway regions located in the east of the country.

WSJ Logo