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Local impact: How would a Russia invasion of Ukraine impact us?

Economists: Threats include higher gas prices, crumbling stock market and potential cyberattacks
Ukraine-Russia Tension
Posted at 4:42 PM, Feb 17, 2022
and last updated 2022-02-17 21:00:25-05

WASHINGTON D.C. — The nation continues to watch whether Russia will ultimately invade Ukraine.

Even though this tension is developing overseas and far away from the U.S., an invasion could have a far-reaching effect that could be felt right here in Colorado and around the nation.

GAS PRICES

The national average for a gallon of gas in the U.S. hovers around $3.50 so far this month.

As we've reported, Russia is one of the world's largest suppliers of energy and a conflict will likely disrupt the market even more.

President Joe Biden has even threatened to shut down a new natural gas pipeline, Nord Stream 2, which runs from Russia to Germany.

Gas

"The conflict between Russia and Ukraine is likely to push crude oil prices above $100 a barrel sooner than earlier projected," said Naeem Aslam, chief market analyst with AvaTrade. "The potential jump in oil prices depends on what sort of sanctions the U.S. and its allies are likely to impose on Russia."

CYBER ATTACKS

The White House has warned for years of the possibility that Russians could attack internet systems in America.

News 5 has reported extensively on cyberattacks and the potential impact it can have on small businesses.

How to protect yourself this Cyber Monday
According to Security Magazine, a hacker attack occurs every 39 seconds. And due to the extra internet traffic on Cyber Monday, this statistic is expected to increase today and through the holidays.

Cyber security experts warn consumers to never click on unknown links as they could compromise your computer's network and personal information.

As an added layer of security on smartphone devices, you may wish to set up multi-factor authentication.

TROOP DEPLOYMENTS

Thousands of American troops have been sent to countries like Poland to shore up defenses. In the event of an invasion or increased tensions elsewhere, more American troops may need to be deployed to different regions in the world.

The United States is part of NATO---a military alliance that is required to protect each other. Poland is part of NATO but Ukraine is not which is why American troops aren't actually going there.

GROCERY PRICES

Reuters reports that Ukraine has emerged as a key exporter of wheat and corn in the last decade. This year, the country had hoped to become the world's No. 3 wheat producer and the No. 4 corn producer. A military conflict with Russia, according to Reuters, would severely hamper those efforts and a lower global supply of those key commodities could drive up prices of essential grocery items, like bread.

Grocery Outlet
The US economy is strong, yet discount retailers are booming. That's why "extreme value" supermarket chain Grocery Outlet believes its the perfect time to hit the public market. Credit: Paul Bersenach/Orange County Register/Getty Images

STOCK MARKET

Every stock market is a global market. Events that happened thousands of miles away routinely impact people's stock portfolios around the world.

The market has already taken a hit amid fears of a Russian invasion of Ukraine.

On Feb. 17, the Dow Jones fell 622 points to finish the day at 34,312---a 1.78% percent loss.

NASDAQ tumbled 407 points to finish the day at 13,716---a 2.88% decrease.