The AmCham Czech Republic Board met to discuss the short and long-term implications of the Ukraine conflict. Along with top representatives from member companies, the Board was briefed by Martin Jahn of ŠKODA AUTO a.s., AmCham Vice-President Milan Šlapák of GE Aviation, Board member Jaroslava Rezlerová of ManpowerGroup Czech Republic, and Jiři Schneider, a former Deputy Minister of Foreign Affairs of the Czech Republic.
The economy has to reckon with three impacts: the decline in important exports from Ukraine (auto parts and grain), the collapse of the Russian market due to company withdrawal and sanctions, and price inflation of certain commodities. The third is likely the most significant in the long-term, and the longer the conflict continues, the deeper and more unpredictable the impact.
The conclusion was that the conflict will take longer than a few months to resolve. A ceasefire could happen in the next weeks. That would not be enough to release sanctions, or convince companies it is safe to return to either market.
Contact AmCham Czech Republic to find out more.
3rd March 2022
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22nd June 2022