HOW THE WAR WILL AFFECT US

While Australia does not import crude oil or petrol from Russia, it is sensitive to global fluctuations. When the benchmark oil price was $US90 per barrel, the five-city average Australian petrol price was near $A1.70 per litre. With the price of oil expected to rise to $US125 a barrel, drivers could see petrol prices at $A2.10 a litre. However, increased global oil production in response to the crisis should mean the increase is only temporary.

OIL AND GAS

While Russia may be an oil and gas powerhouse, Sydney University carbon materials and sustainable energy expert Professor Yuan Chen said Australia was in a much better position than Europe. Globally, there were more than enough fossil fuels the world and Europe could use. Australia also had abundant renewable energy “and we can harvest these sources much more efficiently than in Europe”, he said.

CARS AND SMARTPHONES

Russia is a major global supplier of palladium, accounting for one-third of the world’s supply. It is also a key source of most of the world’s nickel. Both minerals are used in the automotive industry and also smartphones and batteries.

FOOD PRICES

Russia is the world’s biggest producer of fertilisers, supplying almost a quarter of the world’s ammonia exports. Materials such as potash, urea and phosphates are needed in food production. Should there be disruption in supply, prices will naturally rise. As for Ukraine itself, its most exported product is corn, while it is also a major exporter of seed oils such as sunflower and cottonseed.

EXPORTS

Australia exported about $680 million worth of goods to Russia in 2020, including alumina, live animals, starches, inulin and wheat. Just how the conflict will impact exporters will depend on how long and severe the conflict becomes.

INFLATION

Economists fear inflation may also surge on the back of increasing household bills, forcing interest rates to rise with the subsequent impact on mortgage repayments.