Citigroup's CEO says she is certain that war in Ukraine and the energy crisis will plunge Europe into a recession

Jane Fraser, the chief executive of Citigroup, believes the war in Ukraine and the energy crisis will cause a European recession.

The Russian threat, surging energy prices, and supply chain disruptions make the economic downturn inevitable, according to Fraser.

She said that there are three "R" words right now - Russia, recession, and rates.

The invasion of Ukraine by Russia led to a spike in energy prices. Germany is vulnerable to price rises due to their dependence on Russian oil.

The European Central Bank said it will raise interest rates this week in order to bring inflation under control. The stock market in France and Germany will likely be hit by that.

Fraser, who was promoted to become Citi's CEO in September 2020, was asked by CNBC'sGeoff Cutmore whether Europe is headed for a recession.

She said yes and that she hoped she was wrong.

The brutal winter that is hammering the stock market will prove to be more resilient to the US than Europe, according to Fraser.

She said that rates are more important than recessions in the US because of the resilience of the economy.