The Feb. 24 Russian invasion of Ukraine has exacted a steep toll, most notably from a humanitarian perspective. But Western sanctions and halting of operations in Russia have disrupted the already-fractured flow of global trade — including impacts in Wisconsin, says international trade expert Ngosong Fonkem, an attorney with Chicago-based Page Fura, P.C. and Global New North steering committee member.
“Although the U.S. government’s stated goal for taking drastic trade measures against Russia is to cripple the Russian economy, these trade measures are double-edged swords,” Fonkem says, noting that Russia ranks fifth in the world for purchasing power parity and 11th in gross domestic product.
Russia is the 35th-most popular destination for Wisconsin exports, representing $109 million in 2021, according to data from the Wisconsin Economic Development Corp. Categories included industrial machinery, vehicles and scientific instruments. Russian import business accounted for roughly $26 million last year.
“Not only has the Wisconsin economy been impacted from an import and export perspective, but many large Wisconsin multinational companies have also voluntarily elected to halt their business operations in Russia, whether due to the complications involved in navigating a dynamic sanctions environment, ambiguity around beneficial ownership of high-risk partners, reputational concerns, a calculation that it was the right thing to do, or all of the above,” Fonkem says.
The U.S. is now in a “full-blown economic war” with Russia, Fonkem says.
“The Wisconsin business community should remain vigilant and follow ongoing developments closely,” he says.
