Harvard economist and former Obama adviser says Russia is 'basically a big gas station' and is otherwise 'incredibly unimportant' in the global economy

According to The New York Times, Russia's economy is "incredibly unimportant in the global economy except for oil and gas."

He said it was a big gas station.

His comments come as the West prepares sanctions against Russia. The measures could cause the entire Russian economy to fall into chaos, but they could also cause further damage to the US, Europe, and the rest of the world as they battle inflation and rising energy prices.

On Monday, Moscow declared the independence of two regions of Ukraine and sent troops there, raising the prospect of a war. US citizens are not allowed to engage in any exports, imports, or new investments in the areas of Luhansk, and the rest of the rebel regions.

The latest nominal GDP data from the World Bank shows that Russia's economy is on par with Brazil, even though it has more wealth in raw materials. Italy and South Korea have economies that are stronger than that of Russia, which has less than half of its population.

Russia's oil and gas exports are important to the world.

According to the US Energy Information Administration, the European Union imports 80% of the natural gases it uses, and Russia accounts for 40% of the natural gas imports.

The disappearance of gas and oil imports could cause disaster for the region and the global economy because of the surging energy prices in the EU. In the US, gas prices have hit a seven-year high, climbing to around $3.50 per gallon, while inflation is at its highest rate in 40 years.

40% of Ukraine's wheat and corn exports go to the Middle East and Africa, according to The Times.

Tom Vilsack, the Secretary of Agriculture, said on Saturday that American farmers would step in and help in the event of a food crisis in those regions.

According to the AP, Ukraine is the 12th largest exporter of grain in the world and is expected to provide 16% of global corn exports this year. Vilsack told the outlet he believed American consumers would be unaffected, but Europeans would face a different story.

Gregory Daco, chief economist for consulting firm EY-Parthenon, told The Times that there is high inflation, strained supply chains and uncertainty about what central banks are going to do.