Latest reports state that Putin's troops have been ordered to perform what is loosely described as "peacekeeping functions" in Lubansk and Donetsk raising fears troops could soon cross the border.
If Putin's Red army attacks, the impending hostilities could represent the most significant war in Europe since WW2.
So, what are your concerns/predictions about the impact on our lives here as expats in Asia, if the conflict worsens?
Financial Impact
Initially one would expect the world stock markets will take a hit, so any invested in a retirement plan may see funds reduced.
For example, concerns on the Ukraine-Russia tension and higher average domestic inflation projection for this and next year have already resulted in the upticks of Treasury bill (T-bill) rates in the Philippines this week.
Global crude prices dropped marginally as news of fresh diplomatic efforts to resolve the Ukraine crisis soothed some concerns oversupply.
However, as we have already seen, Oil and Gas prices have risen and therefore could go higher along with electricity.
In Vietnam, gas prices reached a historic peak this week, and in some cases, supplies were limited.
There could also be some blockades, meaning shipping will burn more expensive fuel to get to Asia, resulting in food shortages and rises even further!
If a war breaks out between Russia and Ukraine, China will tighten its grip on South Asia Pacific, and Taiwan. Then the Philippines will have to choose a side!
Needs a close watch by Thailand
Sanan Angubolkul, chairperson of the Thai Chamber of Commerce, said the conflict brewing in Eastern Europe requires a close watch by Thailand.
A bad situation could worsen if the standoff between Russia and the West over Ukraine leads to fighting, said Mr Sanan.
"The global oil price continues to rise, affecting the costs of energy and logistics in the global supply chain system. This also affects Thailand, as indicated by the rising prices of goods and services," said Mr Sanan.
Thai petrol prices
The dispute is a "warning sign" the global and Thai economies may plunge into trouble if the US, UK, and EU decide to impose economic sanctions on Russia if it invades Ukraine, said Supant Mongkolsuthree, chairperson of the Federation of Thai Industries (FTI).
"Trade between Thailand and Russia, especially for food and farm produce, would certainly be affected by such sanctions." Mongkolsuthree added.
Thai Russian Exports
In 2021, Thailand's exports to Russia tallied US$1.02 billion, accounting for 0.4% of the country's total export value.
Key export products included tractors, rubber, rubber-made products, machinery and parts, electrical appliances and parts, and plastic.
Meanwhile Thai shipments to Ukraine totalled only $135 million, representing 0.05% of the country's total exports. Key exports included tractors, rubber and rubber-made products, plant-based seasonings, machinery, and parts.
Air travel disruptions
Apart from these economic issues, it is several flight routes would need to be changed as flying over Russia and Ukraine airspace will be a definite no-no.
This is likely to not only add to everyone's travel times but is also likely to see fare increases to cover additional fuel costs.
The tensions would also affect exchange rates, plus travel and tourism.
What are your thoughts? Perhaps you feel it is just too far away to be of major concern.
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