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Ukraine Russia war will have an impact in Chicago: Crain's Juice Forecast - Crain's Chicago Business

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The mask wars will continue to make lots of news in Illinois this week. More on that in a moment. But it’s the other war, the potentially damaging conflict in Ukraine, that increasingly is showing signs of affecting the daily lives of people here.

According to U.S. Rep. Mike Quigley, D-Chicago, who as a member of the House Intelligence Committee has access to some of the same material President Joe Biden has been citing, the intelligence is clear: “A Russian invasion is imminent.”

Ratifying the conclusion of intelligence analysts are clear actions on the ground, such as Vladimir Putin’s decision not pull troops from Belarus at the conclusion of joint military exercises but to keep them there indefinitely, Quigley said. The only real question may be whether the entire country gets invaded or whether the Russians, for now, stop in its eastern end, close to the Russian border.

Americans need to care about this, Quigley argued, because if Putin snags Ukraine without much pushback, U.S. allies Poland, the Baltic states and other will be in jeopardy—“and as a result western Europe.”

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Without detailing them, Quigley said the sanctions Biden is likely to impose in the event of an invasion quite probably will tank the stock market, cause a spike in the cost of natural gas and other fuels, and potentially spark a cyberwar of sorts that will impact banks, petroleum processors and anyone else connected to the internet.

Then there’s the question of refugees.

An all-out war could force millions of Ukrainians to flee to the west, and while they might start in Poland, Chicago with its large Ukrainian population should get ready to house and resettle people, he said.

Another local observer with extensive knowledge in the field, Chicago Council on Global Affairs President Ivo Daalder, said he agrees with Quigley: A Russian invasion seems to be on the way.

Such an action would be “monumental,” Daalder said, likely scuttling a controversial natural gas pipeline from Russia to Germany and quite probably prompting Europeans to begin looking seriously for alternate energy sources. “Even the Germans now will realize they can’t trust Russia,” said Daalder, who was U.S. ambassador to NATO under President Barack Obama.

A Cold War-ish heightening of economic competition most definitely will impact Chicago and the Midwest, Daalder said. Russia already has begun to look more toward places such as China for aircraft, a blow to Chicago’s Boeing, and while agri-business will continue—“people have to eat”—things could get bumpy.

All very sobering.

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As for the mask wars, attorneys for Gov J.B. Pritzker are expected to file an appeal on Tuesday to those rulings from lower courts overturning his indoor school mask mandates.

Insiders say the governor isn’t as much trying to restore the mandate now, given quickly improving pandemic data, as to preserve his right to act in the future—if, for instance, another variant even nastier than omicron shows up.

The better question may be when Mayor Lori Lightfoot will lift her mandatory remediation orders. City metrics indicate Chicago should wait at least a couple more weeks to act. 

Meanwhile, the Chicago City Council meets Wednesday to take up a measure the mayor has been pushing for several months: an ordinance allowing the city to go after the assets of gang leaders in court. The “Victim’s Justice Ordinance” passed a Council committee on a divided vote on Friday, 10-4, with some aldermen echoing criticism from civil rights and other watchdog groups who argue the ordinance has not been effective.

Also up at the Council: final approval of the city’s plans to buy a former Aldi building in West Garfield Park. Aldi “abruptly closed” the site in October of last year, per the city, potentially leaving 15,000 residents without a convenient source for food. The city is hoping to solicit a new grocery operator to move in. Also being introduced: a $3.5 million TIF agreement for the new operators of the new entertainment venue at the old Morton Salt site.

Elsewhere, Lightfoot over the weekend endorsed U.S. Rep. Danny Davis, D-Chicago, for a new term. That was a pretty easy one. Harder will be the question of who she backs for the wide-open race to succeed South Side congressman Bobby Rush, also a Democrat. 

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• Backlash brews as Walgreens restarts political contributions: The pharmacy chain pledged to halt donations to lawmakers who opposed Biden's certification as president. Walgreens is giving again, and some are not happy about it. Crain's Ally Marotti reports. 

• Why hospitals aren't requiring front-line workers to get COVID boosters: Wary of losing more staff amid the omicron surge, Advocate, Northwestern and others pass on another mandate, despite evidence showing protection against the virus drops sharply without a third jab. Crain's Katherine Davis has details.

• City denies permit for controversial metal recycler to locate along Calumet River: "In an already vulnerable community," city Health Commissioner Allison Arwady said, the risks of letting RMG set up a recycling facility on the Southeast Side "are too significant to ignore." Crain's A.D. Quig explains.

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