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Why Americans are about to face ‘enormous’ economic repercussions from the Russia-Ukraine war

What’s going to happen next from Russia’s invasion of Ukraine?

SHARE Why Americans are about to face ‘enormous’ economic repercussions from the Russia-Ukraine war
Racks sit empty of product in a Target store.

Racks sit devoid of product in a Target store Tuesday, March 15, 2022, in Sheridan, Colo.

David Zalubowski, Associated Press

There will be “enormous” economic repercussions in the United States from Russia’s invasion of Ukraine in the near future, Treasury Secretary Janet Yellen said Wednesday.

Details: Yellen told the House Financial Services Committee that Russia’s invasion will impact global trade and the flow of food and energy.

  • The repercussions will begin as the U.S. and European sanctions on Russia take shape, according to Fox Business.
  • She said the ban on Russian oil imports will send energy prices skyrocketing, per Reuters.

What she said: “Russia’s actions represent an unacceptable affront to the rules-based, global order, and will have enormous economic repercussions in Ukraine and beyond,” Yellen said to the House Financial Services Committee, per Fox Business.

  • “We think it’s a price that’s important to pay to punish Russia for what it’s doing in Ukraine,” she added.

The bigger picture: It’s not all about Russian oil and energy.

  • Russia and Ukraine account for about one-third of the world’s wheat exports, per CNN.
  • The sanctions will impact nickel, titanium, wheat and more.

What she said: “Russia’s invasion disrupted the flow of food for millions of people around the world and caused prices to spike,” Yellen told the committee, per CNN.

  • “But energy prices are going up, the price of wheat and corn that Russia and Ukraine produce are going up and metals that play an important industrial role — nickel, titanium, palladium — the cost of those things are going up,” she added.
  • “This is going to escalate inflationary pressures as well.”