February 25, 2022 – With Russia’s invasion of Ukraine early Thursday, energy costs are soaring, stocks are plunging, Western sanctions are being sharpened, and central bankers already worried about inflation face additional drags from weaker consumer confidence and bigger potential shocks to fragile European economies.

For global supply chains, “a kinetic conflict in Ukraine could generate a wide range of challenges,” Chris Rogers, an economist in the UK with Flexport, says in a report this week. The risks extend beyond higher energy costs to include disrupted air space in the region, higher rates for shipping insurance and cyberattacks, he says.