Economics
What’s at Stake for Global Economy as Russia Standoff Escalates
- Energy, commodity shock could lead to even higher inflation
- Europe, a big importer of Russian oil and gas, is most exposed
Members of Ukraine's Territorial Defense Forces participate in a drill on the outskirts of Kyiv, Ukraine, on Feb. 19.
Photographer: Ethan Swope/BloombergThis article is for subscribers only.
A world economy that’s still recovering from Covid-19 faces new risks from an energy-price spike as the standoff between the West and Russia escalates.
The U.S. and its European allies unveiled limited sanctions on Tuesday, in response to Russian President Vladimir Putin’s decision to recognize two breakaway republics in eastern Ukraine, and warned that tougher penalties may follow. Russia, whose troops are massed around Ukraine, says it has no plans for a full-scale invasion.