The Fallout From Ukraine

Russia and Ukraine represent only a tiny portion of U.S. trade directly, but the impact of the invasion (and sanctions) is being felt by consumers here.

A lock protects a $100 bill
(Image credit: Getty Images)

You don’t need us to tell you that Russia’s invasion of Ukraine—and Western sanctions on Russia—are playing havoc with your finances. You’re reminded of the pain afflicting your pocketbook every time you fill your gas tank. But the impact doesn’t end there. Americans are spending more at the supermarket, mortgage rates are higher, and investors have experienced big losses in their portfolios

Sanctions on Russia will exacerbate already high inflation, which reached 7.9% in February. Russia’s main contributions to the world economy are commodities—oil, gas, wheat, nickel, aluminum, palladium. To the extent that sanctions cut off those exports, prices will climb still higher. For the global economy, this is the biggest hit since the onset of COVID-19. How bad will it get?

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Mark Solheim
Editor, Kiplinger's Personal Finance

Mark became editor of Kiplinger's Personal Finance magazine in July 2017. Prior to becoming editor, he was the Money and Living sections editor and, before that, the automotive writer. He has also been editor of as well as the magazine's managing editor, assistant managing editor and chief copy editor. Mark has also served as president of the Washington Automotive Press Association. In 1990 he was nominated for a National Magazine Award. Mark earned a B.A. from University of Virginia and an M.A. in Writing from Johns Hopkins University. Mark lives in Washington, D.C., with his wife, and they spend as much time as possible in their Glen Arbor, Mich., vacation home.