On Tuesday, Pres. Joe Biden announced new sanctions on Russian financial institutions and other entities
The new round of sanctions come after Russia declared two regions in Ukraine Independent Territories. Experts on Russia and the financial markets told NBC7 that the crisis overseas is not expected to have an impact on the economy in the long term.
“Overall, our economic exposure to Russia is relatively small,” SDSU Professor Mikhail Alexseev said.
Tension in Eastern Europe is of major geopolitical importance, of course, however, and there will be a short-term economic impact.
“I've seen estimates that it may contribute, for example, 6-7 cents at the pump, but again, this is very speculative, and, you know, if you can put things in perspective, it may hit Europe more, where there's a greater energy dependence on Russia,” Alexseev said.
The sanctions come at a time when crude oil prices have been on the rise. Russia is a major energy exporter and crude oil prices expected to continue to rise globally at a time when gas prices are already at record highs in San Diego.
if there is a major military conflict, though, it could affect the local economy in dramatic fashion.
“If the conflict escalates and more sanctions are imposed or there's actual, you know, armed conflict between Europe or the United States and Russia, obviously, that would be bad,” UC San Diego Professor Kyle Handley said, "but I think, in the short run, if things stay as they are, maybe moderate to mild impacts."