A derailed EU will have a greater knock-on effect on Asean

Singapore

WHILE Asean's trade and investment linkages to Russia are relatively small, a derailed economic recovery in Europe as a result of a protracted Ukraine invasion will have a greater knock-on effect on the region, and particularly on Singapore, a key trading partner of the European Union (EU).

Western sanctions, including the latest US ban on Russian oil and gas imports, are posing headwinds to many baseline gross domestic product (GDP) growth forecasts. These may have to be revised lower if more sanctions are imposed to force Russia to end its aggression on Ukraine, a move which could set back Europe's recovery from the Covid-19 pandemic.