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The risks of NATO enlargement

Overview

The prospect of NATO enlargement deep into the former Soviet Union – endorsed by the alliance’s April 2008 summit – deserves the close attention of investors in the region. In the case of Georgia, there is a straightforward risk of armed conflict involving Russia in one way or another. For Ukraine, NATO accession carries both risks and opportunities. It would reinforce the EU convergence story at the heart of the long-term investment case for Ukraine; but in the shorter term it also...

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