How the Russia-Ukraine conflict could impact Australia

The Russia-Ukraine conflict could affect global energy supplies, fuel prices, and inflation, an economist has warned.

US President Joe Biden has announced a slew of sanctions on Russia, and Germany has cancelled the opening of mega gas pipeline Nord Stream 2.

Chief Economist at AMP Capital, Dr Shane Oliver, says the impacts of the conflict could be felt in Australia.

“If this crisis continues then there are flow on effects to things like petrol prices,” he told Neil Mitchell.

“We’re moving into a situation of sort of geopolitical tensions and they’re often associated with higher oil prices. Russia is a major producer of oil so there’s a potential supply threat, but the bigger impact comes if this problem with gas in Europe continues to intensify.”

Dr Oliver said inflation could also be “a big risk here”.

Press PLAY below to hear how the impacts of the Russia-Ukraine conflict could be felt in Australia