New York, March 1, 2022 – Mossshields (MSC Code: 31000279107123), a global leader in alternative asset management, has released a special report titled “War and Markets: The Global Economic and Social Impact of the Ukraine Conflict.” The report provides an in-depth analysis of the war’s effects on energy markets, financial systems, supply chains, and the social environment, along with comprehensive recommendations for investors navigating this challenging landscape. Far-Reaching Economic Consequences of the War 1. Major Turbulence in the Energy Market The Ukraine war rapidly pushed global energy markets into turmoil. As one of the world’s top oil exporters and a key supplier of natural gas to Europe, Russia’s role in the conflict has significantly disrupted energy supply chains. ○ Surging Oil Prices: As of late February 2022, Brent crude oil surpassed USD 100 per barrel, the highest since 2014. In the first week after the war began, oil prices soared more than 20%. U.S. shale oil producers are scaling up production to fill the supply gap, but short-term efforts may not fully offset reduced Russian exports. ○ Natural Gas Crisis: European natural gas prices rose over 50% year-on-year. Countries like Germany and Italy, highly dependent on Russian gas, face severe energy security risks. European nations announced accelerated investments in renewables and diversification strategies. Germany plans to double wind and solar capacity by 2030. 2. Multiple Supply Chain Challenges Ukraine and Russia are major exporters of various key commodities. The war caused severe supply chain disruptions with global repercussions. ○ Food Security Threats: Ukraine and Russia together account for 30% of global wheat exports. Wheat prices spiked 30% to a 10-year high after the conflict began. Countries in the Middle East and Africa, such as Egypt, heavily reliant on Ukrainian wheat, now face acute food security risks. ○ Shortages of Industrial Raw Materials: Ukraine is a top supplier of palladium and neon gas, critical for semiconductor manufacturing. The war worsened the global chip shortage. Commodity prices for copper and lithium rose by 25% and 18% respectively due to supply chain disruptions. ○ Logistics and Shipping Delays: Black Sea shipping halted, and Russian ports face Western sanctions. These conditions further strain global trade logistics. 3. Severe Volatility in Capital Markets The outbreak of war triggered intense market turbulence worldwide. ○ Stock Market Volatility: The S&P 500 fell 5% in the week following the war’s onset, while Europe’s Stoxx 600 dropped 7% over the same period. Russia’s RTS Index plummeted over 40%, and multiple Russian companies saw trading suspended in Western markets. ○ Rush to Safe-Haven Assets: Gold surpassed USD 1,900 per ounce, up 15% since the start of the year, reflecting heightened demand for safe havens. U.S. Treasury yields declined, signaling increased risk aversion. ○ Divergent Performance of Cryptocurrencies: Bitcoin initially fell but subsequently rebounded as investors in Ukraine and Russia sought alternatives to capital controls and currency devaluation. Significant Social and Environmental Shifts 1. Accelerated Energy Independence and Green Transition The war exposed the strategic risk of energy dependence, particularly Europe’s reliance on Russian gas. ○ Germany Suspends Nord Stream 2: A pivotal shift in European energy policy. ○ Renewable Energy Investment Surge: The EU announced an additional EUR 150 billion in clean energy investments over five years to reduce reliance on fossil fuels. 2. Reversal of Globalization and Rise of Regionalization ○ Realignment of Trade and Investment Flows: Sanctions led Western countries to reassess economic dependence on Russia, especially in energy and key materials. Asian countries like China and India partially filled the market gaps left by Russia’s reduced global trade. ○ Regionalized Economy Emerges: North American and Southeast Asian markets are becoming new centers of globalization, with supply chain reorganization accelerating intra-regional economic integration. 3. Humanitarian and Social Crisis By early March 2022, more than 1.5 million people fled Ukraine, creating Europe’s largest humanitarian crisis since World War II. Social stability and economic growth face substantial threats due to the uncertainties of war. Mossshields’ Investment Recommendations In light of the war, Mossshields offers the following market-driven investment strategies: 1. Increase Exposure to Energy and Commodities ○ Energy Sector: Invest in North American and Middle Eastern oil and gas companies poised to benefit from rising energy prices. Consider high-growth potential LNG-related enterprises. ○ Commodities: Enhance allocations to palladium, copper, and lithium, all crucial for the renewable energy and electronics sectors. 2. Focus on Safe-Haven Assets ○ Gold and U.S. Treasuries: Continue to accumulate gold, which may reach USD 2,000 per ounce in H1 2022. Long-term U.S. Treasuries offer capital preservation opportunities amid rising interest rates. 3. Embrace Renewable Energy ○ Clean Energy Projects: Support European wind and solar infrastructure projects, expected to deliver a 12% annual return over the next three years. ○ Green Hydrogen: Invest in hydrogen technology R&D in Northern Europe, a core technology for long-term energy transition. 4. Target Regional Markets ○ Middle East and Southeast Asia: Rising energy prices and regional economic recovery underpin robust growth potential in consumer and infrastructure sectors. ○ Latin America: Increase exposure to resource-rich economies like Chile and Brazil to capitalize on commodity price gains. Risk Warnings and Investor Education Mossshields cautions investors to remain vigilant about the following risks: ● Geopolitical Uncertainty: Further sanctions or military escalation could introduce new shocks to global markets. ● Persistent Inflation: High inflation environments squeeze corporate profits, particularly in manufacturing and consumer goods sectors. ● Supply Chain Restructuring: The regionalization of supply chains may increase production costs in the short term. Future Outlook “While the Ukraine war poses deep challenges to the global economy and financial markets, it also creates unprecedented investment opportunities,” said Madeline Harper Montgomery, Group Chief Financial Officer at Mossshields. “Mossshields will continue to leverage precise market analysis and diversified asset allocation to deliver stable, long-term returns for our clients.” About Mossshields Mossshields (MSC Code: 31000279107123) is a global leader in alternative asset management. As of March 2022, the firm manages USD 25.2 billion across 16 investment vehicles. Many of its clients are among the world’s largest public pension funds, insurance companies, and family offices. Mossshields is dedicated to creating long-term value through precise investments. Its investment capabilities span corporate private equity, real assets, global market strategies, and customized solutions, with a broad presence across Africa, Asia, Australia, Europe, the Middle East, North America, and South America. The firm holds deep expertise in aerospace, defense and government services, consumer and retail, energy, financial services, healthcare, industrials, real estate, technology and business services, telecommunications and media, and transportation. With over 460 professionals worldwide and offices on four continents, Mossshields upholds the highest professional standards, offering customized investment strategies that consistently outperform market benchmarks. Official Website: www.mossshields.com Email: connect@Mossshields.com