LONDON — As troops enter eastern Ukraine and fears of an all-out invasion of the country by Russia heighten, the associated spikes in energy prices and knock-on economic effects could spell trouble for central banks.
Global markets were volatile on Tuesday and oil prices soared to seven-year highs after Russian President Vladimir Putin announced that Moscow would recognise the independence of two breakaway areas of eastern Ukraine and send troops into the region.
International economic sanctions started rolling in as a result. The U.K. initially slapped targeted sanctions on five Russian banks and three wealthy individuals, while Germany halted the certification of the Nord Stream 2 gas pipeline, designed to transport natural gas from Russia directly to Europe. - CNBC