A few days ago, it was announced that Russia and Ukraine would meet in Belarus for negotiations regarding the ongoing war between the two nations. A cease-fire was possible, giving many hope that peace would finally be achieved.
Unfortunately, this was not the case. Talks ended on Monday without a deal made, with diplomats returning to their countries with an agreement to meet again at a future time. Along with this comes signs of Russian escalation, with Russia sending in more troops and shelling cities across Ukraine. Ukraine is still providing heavy resistance to the invasion, angering Russia, although the recent shelling has killed more than 10 civilians.
Further escalation has done nothing to help the Russian economy. The value of the ruble continued to collapse on Monday, with the Central Bank of Russia increasing interest rates to 20 percent to try and ease the effect. Along with that, the US and EU have blocked the central bank from using the dollars and euros from their emergency reserves to help stabilize the ruble. The governor of the central bank says that this, along with all the other sanctions, could result in an economic collapse of Russia, which would present some pros and cons. The purpose of these sanctions is to cause Russia to back off and retreat, and an economic collapse could easily fulfill that goal. However, an economic collapse could cause Putin to get desperate, which could bring nuclear warfare into the play. An economic collapse could lead to a spike in oil prices, and although the current spike is sustainable, which we are soon to discuss, another increase would hurt nations all over the globe.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.