By imposing sanctions against Russia, international authorities have attempted to manage the Russian invasion of Ukraine, but this has caused significant supply chain problems.
As innocent residents were forced to abandon their homes and many died, Ukraine had to deal with port restrictions and safety difficulties.
Businesses like Airbnb have responded by providing housing for 100,000 Ukrainians in need.
In an unexpected turn of events, when Russia invaded Ukraine, 2022 began with a global conflict. Global markets were affected by the Russian invasion of Ukraine in 2022, which only made the already unstable economy—which was already beset by growing inflation and supply chain problems—worse.
Why should you make investments in Ukraine?
We need to take a step back and consider why we should be investing in Ukraine right now before we look at how to do so. Beyond just Ukraine, the Russian invasion has caused commodity disruptions, problems with the supply chain, trade closures, and rising inflation. The effects of this conflict have been felt all over the world.
Over the past few years, Kiev, Ukraine, has developed into a significant center for software developers. Despite only having 43 million people, the country has about 200,000 software developers. Many multinational corporations have hired workers in Ukraine due to the lower wages and high caliber of developers. As they seek to expand, many Ukrainian tech startups and businesses are hiring. The innovation and expansion of the Ukrainian technology sector provide strong justification for diversifying your portfolio to include exposure to this area of the global economy.
These Ukrainian businesses have shown tenacity in how they have handled the war as it has developed. Despite all of the issues they had to address simultaneously, many have kept running. After ensuring the safety of their employees, many tech companies with Ukrainian offices carried on with business as usual during the conflict. For the entire world to witness, the Ukrainians who are being attacked, their tenacity and tenacity, have been truly moving.
Last but not least, it is worthwhile to invest in or donate money to Ukraine because helpless people there require it now more than ever. In 2022, the Ukrainians have already faced an inconceivable number of difficulties. Donations provide urgently needed relief, and economic investment will give Ukraine’s economy the money it needs to keep expanding and rebuilding after this conflict is over.
ETFs with exposure to Ukraine
Based on funds that we were able to locate with European investment interests, here are your best options if you’re looking to invest in an ETF with exposure to Ukraine.
Morningstar Emerging Markets Factor Tilt Index for FlexShares (TLTE)
For investors looking for stocks with a high buy-and-hold potential, this ETF is made up of stocks from emerging markets. Many investors have included this asset in their portfolios due to the growth potential of developing economies.
FTSE All-World ex-U.S. Small-Cap ETF from Vanguard (VSS)
You can access small-cap companies that are listed outside of the US through this ETF. This fund monitors the performance of 3,300 stocks for businesses in 46 developed and emerging market nations.
FTSE Europe Vanguard ETF (VGK)
With holdings dispersed across more than a dozen markets, this ETF provides exposure to Europe’s developed economies. Many analysts argue that it’s time to look beyond the doom brought on by the conflict in the Ukraine and the rising cost of fuel.
FTSE Developed Markets ETF from Vanguard (VEA)
Stocks from various developed markets outside of North America are included in this ETF. This fund seeks to mimic the performance of a variety of stocks (large-, mid-, and small-cap companies) listed on the major stock exchanges in Europe.
stocks exposed to Ukraine
Due to the location of their corporate operations, many domestic companies are exposed to Ukraine. The deteriorating situation in Ukraine has an effect on the business dealings of many other companies. However, we decided to concentrate on stocks with immediate commercial implications. Here are a few stocks with exposure to Ukraine that you should think about buying.
The largest cruise line company in the world, Carnival Corp. (CCL), receives about 3.6% of its revenue from Russia and Ukraine. Since the invasion started, shares of this stock have fallen as a result of rising fuel prices and a reduction in earnings.
In March 2022, the company declared $3 million in assistance for Ukraine. As they attempt to negotiate the difficult environment in light of everything that is going on in Ukraine, it is important to keep an eye on this company. Since it is impossible to predict when travel to that region of the world will resume, CCL would probably be a buy-and-hold strategy.
ABNB: Airbnb Inc.
The online marketplace for vacation rentals and tourism-related services has been significantly impacted by the conflict in Ukraine. Limiting business operations in Russia was a challenge for Airbnb, which also had to consider how to help Ukrainian refugees looking for shelter abroad.
Due to the generosity of Airbnb and its hosts, 100,000 Ukrainian refugees were able to find shelter in other nations, setting a high standard for humanitarian aid. Additionally, Airbnb allowed visitors from all over the world to reserve apartments in Ukraine as a donation even though they weren’t planning to stay. The pent-up demand for travel is causing a boom in people looking for lodging and travel activities all over the world, so it’s worth keeping an eye on Airbnb.
It’s also crucial to remember that purchasing an Airbnb property in Ukraine supports the regional economy. Therefore, if you choose not to purchase Airbnb stock, you might think about helping Ukrainian Airbnb hosts.
EPAM Systems Inc. (EPAM) currently employs 14,000 people in Ukraine through its software and digital engineering platforms. Since the invasion started, share prices have naturally fallen, but some analysts view this as a buying opportunity. The management is still trying to minimize the significant exposure to Russia and Ukraine. Even more impressively, the company was able to forecast a 50% increase in revenue for 2022.
The Expedia Group Inc.
Due to the obvious travel concerns that the conflict generated, the travel agency saw a decline in earnings when the invasion started in Ukraine. Expedia announced in March that it would no longer be selling flights to and from Russia. Although it is difficult to foresee how this conflict will develop, it is safe to assume that Expedia will continue to be impacted by the restrictions on travel and the rising cost of fuel. In order for the business to resume operations in Russia and Ukraine, it is hoped that the situation will stabilize.
prominent Ukrainian stocks
The Ukrainian stock exchange is known as PFTS. Some of the largest Ukrainian businesses available for investment worldwide are listed below. Consider the following as you choose your investments: We must remind you of the dangers of trading on international markets due to regional unpredictability and the volatility brought on by the war.
(KER.WA) Kernel Holding S.A.
The largest producer of sunflower oil in Ukraine, Kernel Holding, has its corporate office in Kiev. On the Warsaw Stock Exchange, the business is traded. In the agricultural sector, Kernel Holding operates in seven different business segments. Due to the Russian invasion, the company has experienced significant setbacks with regard to planting and exports.
It’s critical to monitor whether shipping flows will improve because Ukraine is a major exporter of corn, sunflower oil, and wheat. Although the company has increased rail sales through its western border, the port closures are severely disrupting shipping.
(AST.WA) Astarta Holding N.V.
The holding company for Ukrainian agriculture and industry is currently traded on the Warsaw Stock Exchange. Astarta had stated that at one point, more than 150,000 tonnes of grains were stuck at the border because the main ports were shut down due to the ongoing conflict. The company had committed to delivering 25,000 metric tonnes of corn to its European partners in April, but clearance issues with the railways prevented this from happening.
UTLM Ukrtelecom
With a portfolio of five distinct business sectors, including mobile services, enterprise, customers, corporate clients, and operators and providers, Ukrtelekom is a Ukrainian telecommunications company. Since the start of the conflict in Ukraine, the firm, which was established in Kiev in 1991, has played a crucial role in message delivery and communication.
What you must understand before investing in Ukraine
As you are already aware, the conflict in Ukraine has led to turbulence on the world stock market. Volatility can occasionally lead to new opportunities. In other cases, the volatility can cause short-term errors because of fear.
Before purchasing Ukrainian securities or any stock that may be impacted by the ongoing conflict between Russia and Ukraine, there are a number of factors to take into account. Hopefully, once they feel it is safe to do so, many businesses can resume operations in Ukraine.
You must also take into account the sanctions imposed on Russia when looking to invest in the Ukrainian market. Due to Russia’s invasion, many nations around the world only conduct sporadic business with them. Due to the delays and trade issues caused by the port closures, Ukraine is also affected. These various supply chain problems have all contributed to an increase in global inflation.
When there is significant global uncertainty and high inflation, you must safeguard your portfolio. You can examine
Conclusion
The Ukraine was invaded by Russia on February 24, 2022. In the week after the invasion, Moscow’s MOEX index fell by nearly 9% (Financial Times, 2022d). As can be seen in Fig. 1, significant losses were also recorded by stock market indices. Europe, and possibly the rest of the world, may soon experience extensive effects. Commodity price increases are amplified by supply chain disruptions as a massive refugee influx occurs as nearly 7 million Ukrainians flee their homeland.