What could happen to European stocks if Russia invades Ukraine?

Live updates: follow the latest news on Russia-Ukraine

Russia-exposed European stocks have been under pressure for weeks amid fears Russia could invade Ukraine and the stand-off has triggered volatility across the European stock market.

After Russian-backed separatists in breakaway regions in eastern Ukraine announced an evacuation of residents on Friday, Germany's main stock index, the most sensitive to a potential conflict in Ukraine, fell more than 1 per cent and headed towards a four-month low hit earlier this week.

The US said Russia could invade Ukraine at any time and might create a surprise pretext for an attack. It reaffirmed a pledge to defend "every inch" of Nato territory.

Why are UK stocks suddenly outperforming US markets?

London stocks tumble amid heightened Russia-Ukraine tensions

Investors are monitoring shares most at risk from potential sanctions against Russia, including banks and oil, mining, consumer and construction material companies with exposure to Russia and Ukraine.

Citi analysts said their basket of European companies with Russian exposure has underperformed during periods of heightened tensions, as in 2014 and 2018, following western sanctions against Russia.

The investment bank's list of almost 40 European stocks with exposure to Russia and Ukraine includes beverage companies Carlsberg and Coca Cola, which make 13 per cent and 15 per cent of their sales in Russia respectively, Nivea maker Beiersdorf and France's food giant Danone, with around 6 per cent of its sales in Russia.

European stocks with exposure to Ukraine include London-listed iron pellet producer Ferrexpo, with its entire operation based in the country, Citi said.

According to Jefferies analysts, France's video gaming company Ubisoft has 4 per cent of its workforce in Ukraine, while Swedish-based healthcare and diagnostic services provider Medicover makes 8.5 per cent of its sales in the country.

European banks with local branches in Russia are the most exposed to risk resulting from potential sanctions in the event of any further escalation, JPMorgan said.

Austria's Raiffeisen Bank International derived 39 per cent of its estimated net profit last year from its Russian subsidiary, while Hungary's OTP, UniCredit and Societe Generale made between 6 per cent and 7 per cent of theirs in Russia last year, JPMorgan numbers showed.

As Russia supplies 35 per cent of Europe’s gas demand, the tensions in Ukraine have increased the risks of energy disruptions in Europe, Goldman Sachs analysts said.

"We would expect the German DAX and MDAX [the mid cap index] to be more vulnerable than other country indices, mainly due to the reliance of their companies on energy for their production," they said.

They expect oil and gas companies to outperform on headlines of further escalation and rising European gas prices, citing Total and Equinor as the main beneficiaries.

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Stay hydrated: Drink plenty of fluids, especially water. Avoid alcohol and caffeine, which can increase dehydration.
Seek cool environments: Use air conditioning, fans, or visit community spaces with climate control.
Limit outdoor activities: Avoid strenuous activity during peak heat. If outside, seek shade and wear a wide-brimmed hat.
Dress appropriately: Wear lightweight, loose and light-coloured clothing to facilitate heat loss.
Check on vulnerable people: Regularly check in on elderly neighbours, young children and those with health conditions.
Home adaptations: Use blinds or curtains to block sunlight, avoid using ovens or stoves, and ventilate living spaces during cooler hours.
Recognise heat illness: Learn the signs of heat exhaustion and heat stroke (dizziness, confusion, rapid pulse, nausea), and seek medical attention if symptoms occur.

Labour dispute

The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.

- Abdullah Ishnaneh, Partner, BSA Law

Heavily-sugared soft drinks slip through the tax net

Some popular drinks with high levels of sugar and caffeine have slipped through the fizz drink tax loophole, as they are not carbonated or classed as an energy drink.

Arizona Iced Tea with lemon is one of those beverages, with one 240 millilitre serving offering up 23 grams of sugar - about six teaspoons.

A 680ml can of Arizona Iced Tea costs just Dh6.

Most sports drinks sold in supermarkets were found to contain, on average, five teaspoons of sugar in a 500ml bottle.

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Friday Sassuolo v Benevento (Kick-off 11.45pm)

Saturday Crotone v Spezia (6pm), Torino v Udinese (9pm), Lazio v Verona (11.45pm)

Sunday Cagliari v Inter Milan (3.30pm), Atalanta v Fiorentina (6pm), Napoli v Sampdoria (6pm), Bologna v Roma (6pm), Genoa v Juventus (9pm), AC Milan v Parma (11.45pm)

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The biog

Name: Sarah Al Senaani

Age: 35

Martial status: Married with three children - aged 8, 6 and 2

Education: Masters of arts in cultural communication and tourism

Favourite movie: Captain Corelli’s Mandolin

Favourite hobbies: Art and horseback ridding

Occupation: Communication specialist at a government agency and the owner of Atelier

Favourite cuisine: Definitely Emirati - harees is my favourite dish

THE CLOWN OF GAZA

Director: Abdulrahman Sabbah

Starring: Alaa Meqdad

Rating: 4/5

BRIEF SCORES

England 353 and 313-8 dec
(B Stokes 112, A Cook 88; M Morkel 3-70, K Rabada 3-85)
(J Bairstow 63, T Westley 59, J Root 50; K Maharaj 3-50)
South Africa 175 and 252
(T Bavuma 52; T Roland-Jones 5-57, J Anderson 3-25)
(D Elgar 136; M Ali 4-45, T Roland-Jones 3-72)

Result: England won by 239 runs
England lead four-match series 2-1