From crisis to crisis : companies are once again facing a challenging operating environment

Abstract

Russia's invasion of Ukraine in February 2022 has rapidly increased uncertainty related to the economic outlook and financing conditions. The war affects domestic companies’ operating environment in several ways. The total impacts will be felt much more broadly than only by companies that have direct Russian exposures in their business. The weakening economic environment, higher inflation and tighter financing conditions may increase companies’ refinancing risks. The most vulnerable are the companies that have ties to Russia and energy-intensive companies, as well as industries that will face the new crisis already weakened by the pandemic.