Global oil and liquified natural gas (LNG) prices are likely to see a sharp rise in the event of a Russia-Ukraine conflict, which would have negative implications for net energy importers, Moody’s Investors Service said on Wednesday.
Moody’s Investors Service Managing Director Michael Taylor said trade effects are likely to arise from import diversion and diversification, although there may be opportunities for commodities producers in Central Asia to increase supply to China. Supply chain bottlenecks will also be aggravated, adding to inflation pressures in the region.
Tensions have been escalating between Ukraine and Russia in recent weeks, and on Monday Moscow decided to recognise two separatist regions of eastern Ukraine as independent and deployed Russian troops there.
