This thematic chapter shows how the Russian invasion of Ukraine and related sanctions are affecting micro, small, and medium-sized enterprises (MSMEs) in Central and West Asia and suggests policy responses to mitigate the impact. It draws on the results of business surveys in Armenia, Azerbaijan, Georgia, Kazakhstan, the Kyrgyz Republic, Tajikistan, and Uzbekistan carried out six months after the start of the invasion. It assesses the invasion’s macroeconomic impact, outlines its effect on global supply chains, and explores MSME responses. Highlighting how countries are converting risks into opportunities, it notes that strengthening domestic commodity markets and increasing digitalization and available capital could help make MSMEs more resilient.
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