Russia's Invasion of Ukraine

In the early hours of 24 February 2022, Russia launched a full-scale invasion of Ukraine, following months of troop build-up along the border that Western intelligence agencies had repeatedly warned about. Vladimir Putin framed the action as a "special military operation."

The invasion triggered an immediate, severe shock across global commodity and financial markets. Oil prices jumped above $100 a barrel for the first time since 2014. European natural gas prices, given the continent's heavy reliance on Russian supply, spiked dramatically and remained elevated for much of the following year. Global equity markets fell sharply on the day, while safe-haven demand pushed money into the US dollar. Sweeping international sanctions were imposed on Russia's banking system, central bank reserves, and key individuals in the days that followed.

For the UK specifically, the shock fed directly into the energy-driven cost-of-living crisis that dominated much of 2022, compounding pressures that were already building from post-pandemic supply chain disruption.