As the Russia-Ukraine crisis escalates, oil and gas prices are set to spike further, but the impact on energy won't be the only ramification.
As the crisis takes a turn for the worse, analysts tell CNBC that supply chains will be disrupted.
Alan Holland, CEO and founder of Keelvar, said that an invasion of Ukraine would result in the food supply chain getting hit hard.
Analysts said that Russia and Ukraine are big suppliers of metals.
Tensions between Russia and Ukraine reached a boiling point in the past few days as President Vladimir Putin ordered the Kremlin's forces into two pro-Russian rebel regions. He said that Russia would recognize the independence of Luhansk.
Analysts said that much of Europe depends on wheat, barley and rye from Ukraine. It is also a big producer of corn.
Even though harvesting season is still a few months away, a long conflict would cause bread shortages and increase consumer prices.
Ukraine’s currency began declining in value since Russian troops started gathering at the border. This will increase the cost of their exports.
Many nations in the Middle East and Africa rely on Ukranian wheat and corn, and disruptions to that supply could affect food security in those regions.
She said that China is the top corn supplier in 2021, replacing the U.S.
The prices of wheat and corn were going up. Since the beginning of the year, wheat and corn futures in Chicago have increased in value.
If an armed conflict erupts, food inflation could increase.
If core agricultural areas in Ukraine are seized by Russian loyalists, the price of food would go up even more.
According to Tiura, Ukraine has steadily increased its exports over the years, and is now a huge provider of raw materials, chemical products and even machinery.
It is a major supplier of minerals and other commodities.
Since Russian troops started gathering at the border, the Ukrainian currency began to decline in value. Tiura said that this will increase the cost of their exports.
According to Hong, Russia is a major producer of nickel and Platinum.
The economic bellwether copper and nickel are used in electric vehicle batteries and in electronics manufacturing.
The U.S. chip industry heavily relies on Ukrainian-sourced neon and Russia also exports a number of elements critical to the manufacturing of automobiles and medicine.
Germany would be hard-hit by the crisis and most of the European Union would be affected.
Atul Vashistha, chairman and CEO of supply chain risk intelligence firm Supply Wisdom, said that Germany derives most of its energy needs from the natural gas it gets from Russia.
Manufacturing production in Germany will be held back if tensions continue to rise and there is an increase in disruptions due to a potential war or sanctions. He told CNBC in an email that manufacturing in other countries would need to be curbed.
Other transport equipment, electronics, metals and plastics are some of the top exports from Germany.
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