On 2 September 2022, the European Securities and Markets Authority (ESMA) published its second trends, risks and vulnerabilities report of 2022. The report notes that Russia’s invasion of Ukraine against a backdrop of increasing inflation has profoundly impacted the risk environment of EU financial markets. For example, the report mentions that market conditions deteriorated as the Russian invasion and sanctions drove a commodities supply shock, adding to existing pandemic-related inflation pressures, with variations across the EU. There have also been a potentially major challenge to EU climate objectives with some countries turning to coal to compensate for lower Russian fossil fuel imports. The report also discusses the fall in value of cryptoasset markets amid rising inflation and a deteriorating economic outlook.