The economies of Central and Eastern European are the most exposed to spillovers from the crisis in Ukraine, but as things stand the economic impact is likely to be limited. Admittedly, the crisis has the potential to escalate – the key risk for the region is that Russia could restrict its gas exports. However, so long as this doesn’t happen, the prospects for the economic recovery will hinge much more on developments to the region’s west, not to its east.
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