Getting Answers: potential financial impacts if Russia invades Ukraine | News

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With Ukraine under growing threat from Russia, the U.S. and NATO are stepping up their response, which is worrying economists.







SPRINGFIELD, MA (WGGB/WSHM) — Growing tensions between Russia and Ukraine are sparking concerns around the world. Leaders believe Russia is going to invade Ukraine in the coming weeks as tens of thousands of Russian troops are on the border with Ukraine. Now, the U.S. is preparing to take action.

“Boy, I hope they can figure out a diplomatic solution to this thing because nobody’s going to be a winner out of it,” said John Rogers, economics professor at American International College.

With Ukraine under growing threat from Russia, the U.S. and NATO are stepping up their response, which is worrying economists.

“It could have, in my opinion, pretty disastrous consequences,” Rogers added.

Rogers said we’re entering uncharted territory. He told Western Mass News that Ukraine and Russia have a complicated history and he thinks it would be very dangerous for our country to get involved.

“You’d be messing basically with the international financial system,” Rogers noted.

Rogers explained that NATO’s involvement could cause a lot of potential conflicts between us and our European allies if Russia decides to withhold their natural gas.

“That would be probably the first thing to go would be saying you can’t have the pipeline. That would put Germany in a bad spot…The Germans wants Russia’s natural gas because they made the decision to abandon their nuclear power and they don’t have enough windmills or solar panels to substitute and they can’t use coal,” Rogers explained.

After Saudi Arabia, Russia is one of the largest oil producers in the world, so the conflict could have an impact on your wallet in western Massachusetts.

“Gas prices could go up, world energy prices could probably go up significantly,” Rogers added.

Rogers said if the conflict escalates, Russia could ultimately decide to just stop selling oil to western countries altogether.

“They could cause an energy crisis like we haven’t seen for 40 years,” Rogers said.

Copyright 2022. Western Mass News (WGGB/WSHM). All rights reserved.





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