Exchange Rate Fluctuations

Russia’s currency plunged in value in response to the initial sanctions, making imports of IT equipment and services significantly more expensive. As a result, many companies are refusing to ship orders to Russia even if payment is possible. This also means that Russia’s own manufacturers of PCs, servers and communications equipment will be unable to operate. Geopolitical tensions are also impacting other currencies throughout the region, including the euro.

In addition to the immediate consequences identified, other near- and long-term impacts can be expected, including increased stock market volatility and market speculation; risk of cyberattacks and the potential for a broader cyberwar; the disruption of startup environments in both Russia and Ukraine; and the creation of new business and scientific alliances to replace those severed by the hostilities.