Is Russia going to invade Ukraine? Will such an action escalate into a full-fledged conflict between Russia and NATO members? The answers to these concerns will be determined by how the United States and its NATO partners deal with Russia’s opposition to Ukraine possible membership in the military alliance.
Crude oil prices are already sky-high, and a military war might push them far higher. Most budgetary estimates could become obsolete if oil prices stay at current levels, or worse, rise much more, as the government faces a trinity of economic issues on the fiscal (it will have to cut taxes), inflation, and current account fronts.
Suppose Russia invades Ukraine, and a more significant battle ensues, including the US and other NATO members. In that case, the US and other advanced countries are likely to impose economic penalties on Russia. These penalties frequently apply to countries that trade with an aggressor.
To be sure, even without the dangers of the current crisis, Indo-Russian defense ties have been strained. On the one hand, India is expanding its strategic partnership with the United States, as seen by joining the Quad. At the same time, its military equipment purchasing from Russia has come under increased scrutiny.
