Here is a summary of the most important events that unfolded over the last month, and which may affect economic, financial and geopolitical issues in the months ahead:

North America

• In response to Russia’s invasion of Ukraine, the US has launched a series of sanctions to isolate Russia from the global financial system. Among the sanctions imposed, the most significant are those on Russia’s central bank, preventing it from using Putin’s boasted $640 billion in foreign reserves to prop up the value of the plummeting Russian ruble. Sanctions have also blacklisted a major sovereign wealth fund and major Russian banks and their subsidiaries. The US, alongside its Canadian and European allies, have also banned seven Russian banks from using SWIFT, the global messaging system that enables bank transactions. Furthermore, US sanctions have personally targeted Putin and his oligarchs. The White House has even set up a transatlantic task force to confiscate the wealth of sanctioned Russian individuals and companies, including private jets, yachts, and luxury homes. The US has also banned Russian oil imports and has restricted the exports of high-tech products, such as computers and semiconductors, to Russia as it aims to curtail its military capabilities. 

• The US sent a high-level delegation to Caracas, Venezuela to hold energy talks with the country as the war in Ukraine wreaks havoc on energy markets. The American diplomats discussed energy security and energy supplies with President Nicolas Maduro’s government with the intention of reducing Russian energy imports while maintaining the global supply. The meeting between the US and Venezuela comes as a surprise since Washington has refused to deal with Maduro’s dictatorial government since formally breaking off diplomatic relations in 2019. After the meeting, the Venezuelan government released two detained oil executives, signaling a willingness to improve relations with the US. On the other hand, Venezuela has been an ally of Russia under the Maduro regime.  

• Last week, Congress approved its first major spending bill under the Biden administration. The Senate voted 68 to 31 to approve a $1.5 trillion spending measure which includes increases for domestic programs, military investments, and $13.6 billion in emergency aid for Ukraine. 

• The House committee investigating the January 6th, 2021 Capitol riots says it has found enough evidence for a criminal case against former President Donald Trump and some of his allies. Trump could potentially be charged with obstructing an official proceeding of Congress and conspiring to defraud the American people. The evidence collected demonstrates that Trump, conservative lawyer John Eastman, and others, conspired to commit fraud and obstruction by misleading Americans about the 2020 election outcome and attempting to overturn the result. 

Europe

• Since Russia first invaded Ukraine on February 24th, the conflict has escalated. Diplomatic efforts have, so far, failed to produce any results, but a fourth round of peace talks between representatives from Russia and Ukraine began yesterday. Meanwhile, Russia has extended its airstrikes to western areas of Ukraine, coming fearfully close to the Polish border. Russia has stepped up its siege of Mariupol and the shelling of Kyiv’s suburbs as it attempts to take the capital, but Ukraine continues to fight. The United Nations estimates more than 3 million people have fled Ukraine as the danger to civilians mounts. Over the last week, Russia has attacked more than two dozen health care facilities across the country and has refused to guarantee access to humanitarian corridors. The international response to the crisis has been substantial. Among the many measures to isolate Russia from the global economy, international actors have pledged their support for Ukraine. The EU is doubling its military aid to Ukraine and dramatically reducing its reliance on Russian gas, while the International Monetary Fund has approved $1.4 billion in emergency financing for the country. Corporations across the world are pulling out of Russia as the West works to bring the Russian economy to its knees. Since the invasion took place, Russia’s currency has lost more than 30% of its value, and Russian companies traded on international exchanges have lost more than 98% of their value.

• Ukraine and two former Soviet republics, Georgia and Moldova, have officially applied for European Union membership as Russia’s invasion of Ukraine sparks fears of wider Russian aggression. While the membership process usually takes years and requires applicants to meet strict criteria regarding economic stability, corruption, and respect for human rights, Ukraine, Georgia, and Moldova’s membership bid is a more concrete step in their years-long efforts to forge closer ties with the West and get out of Russia’s shadow. Ukrainian President Volodymyr Zelenskyy has been pushing to fast-track Ukraine’s membership process. Many EU leaders are supportive of Ukraine’s bid, but they will most likely require Ukraine to go through the traditional process. 

• French President Emmanuel Macron announced his reelection bid. He will seek a second term as France’s president as he pledges to lead “a unique French and European response” to the challenges and crises facing both France and Europe. So far, Macron has enjoyed a comfortable lead in the polls as the campaign season has been upended by Russia’s war in Ukraine. The first round of the presidential election will occur on April 10^th. If no candidate wins an outright majority, a run-off will be held on April 24th.

• The EU has officially sued China for alleged technology infringements. The World Trade Organization (WTO) lawsuit launched by Brussels claims that Beijing is using domestic courts to undermine intellectual property laws so that tech companies like Huawei, Xiaomi, and others, can secure cut-price technology licenses. The new lawsuit comes on the heels of the lawsuit the EU filed last month accusing China of economic coercion of Lithuania.

Asia, Eurasia, and the Pacific 

• Amid the crisis in Ukraine, Taiwanese President Tsai Ing-wen is calling for increased vigilance in and around Taiwan. She has condemned Russia’s infringement on Ukraine’s sovereignty and has issued four directives aimed at increasing surveillance of military activities near the island and cracking down on disinformation. Concerns that China may take the opportunity to invade Taiwan and complete their “reunification” campaign have arisen as the war in Ukraine takes the world’s attention. Meanwhile, China’s foreign ministry said Taiwan is “not Ukraine”.

• Conservative Yoon Seok-yeol has been elected president of South Korea. Yoon narrowly beat his opponent Lee Jae-myung of the ruling Democratic Party with 48.56% of the vote, which is less than a one percent lead over Lee’s 47.83%. As president, Yoon is expected to pursue a tougher stance against North Korea by strengthening the country’s alliance with the US and boosting its military power. 

• China and the United Nations have reached an agreement to allow Michelle Bachelet, the UN High Commissioner for Human Rights, to visit the Xinjiang province of China where tens of thousands of Uyghurs and other Muslim minorities have been detained in what Beijing calls “reeducation camps”. Bachelet will be the first UN high commissioner for human rights to visit China since 2005.

• New Zealand and the Philippines have both rejected Myanmar’s bid to be a member of the Regional Comprehensive Economic Partnership (RCEP), a huge Asia-Pacific trade deal that took effect on January 1st. While the Philippines did not give a specific reason for the decision, New Zealand has reportedly rejected Myanmar’s membership over opposition to the military junta which has controlled the country for the last year. The trade pact currently includes 15 nations and covers close to a third of all global trade and business activity. 

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