LOUISVILLE, Ky. (WDRB) -- Russia's threats to invade Ukraine continue and as the situation unfolds across the globe, it could have impacts in Kentuckiana.
On Monday, Vladimir Putin ordered troops into Eastern Ukraine. Putin also recognized two pro-Russian eastern regions of Ukraine as independent.
Tuesday, the U.S. put sanctions on Russia, essentially cutting ties between Russian government and Western financing.
While academic professors argue the impacts on the U.S. are not as bad as they could be, there is potential they can worsen.
The conflict between Russia and Ukraine has existed well beyond the last few months, but the two countries chances of going to war has grown significantly.
"There are historic ties going back 1,000 years, but that doesn't necessarily mean that the Russian state should control the Ukrainian state," said Karen Petrone, a Russian history professor at University of Kentucky.
As the Russian troops continue to inch closer into Ukraine territory, the U.S. is finding itself involved because of economics.
"Russia still sells a lot of oil and gas to Europe, so that it could destabilize the energy markets, which would affect global trade in general," said Petrone.
But beyond global economic impacts, it's making an impact in Kentuckiana — specifically, at the gas tank.
Because of Russia and Ukraine's struggles, a single barrel of oil now costs $100. Months ago, a single barrel cost around $70.
"Russia is one of the top three producers in the world of oil, so anything bad happening with Russia, price of oil goes up," said Alexei Izyumov, an associate professor of economics at University of Louisville.
Izyumov said as of now, the economic impacts are not as bad as expected. But if the conflict escalates to war, America will see the price of even more things increase.
"Inflation will accelerate in the U.S.," said Izyumov. "We'll have to help European allies more economically and spend more on military assistance."
America could also see some changes at the grocery store. Ukraine and Russia are also one of the world's largest producers of wheat.
Izyumov said a war will cause further supply-chain disruptions.
"Companies that use these materials will suffer, and their profits will suffer," he said.
It is possible America could put down more sanctions on Russia, if the country continues to move forward with invading Ukraine.
Copyright 2022 WDRB Media. All Rights Reserved.
