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Now that Russia has blatantly invaded Ukraine, instead of the more hidden invasion, Europe is more at risk of economic problems. More sanctions will likely create more threats from Putin to inflict economic retaliation. As Putin ramps up his war with Ukraine, the entire European situation becomes more uncertain, and this leads to more risk aversion by corporations and investors. This is not going to change for a very long time and is almost certain to become much worse as Putin pushes Merkel and she backs down.

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