‘Trade rupture’ between Russia, Germany could cause financial shock: S&P Global

A financial shock could be on the cards if there’s a “trade rupture” between Russia and Germany, warned S&P Global’s chief economist on Tuesday.

“Looking at a downside scenario … there’s kind of several different ways to play that but we think the one that would really move the macro needle is some sort of trade rupture between Russia and Europe,” Paul Gruenwald told CNBC’s “Squawk Box Asia.”

“This is not just cutting off the gas — whether Germany stops buying or Russia cuts it off,” he added.

Following Russia’s unprovoked invasion of Ukraine, several world powers including the U.S., Japan and Canada have hit Moscow with sanctions. The European Union is considering whether to ban oil…