The Russian invasion of Ukraine has added a layer of uncertainty about the extent, outcome, and consequences of the military conflict between Russia and Ukraine. Irrespective of the duration of military hostilities, sanctions and related political activities are likely to continue for some time. The potential effects upon Northern Santa Barbara County can include dislocated commodities markets (notably for oil and gas), supply chain disruptions, inflationary pressures, weaker growth, and capital market volatility.

Even before this overseas crisis, the global economy was experiencing effects of the pandemic, including inflation and tangled supply chains. We are keenly aware of the effects of the military conflict, especially upon oil, natural gas and metals, and higher prices for those commodities. In addition, escalating gas prices have a ripple effect among industrial enterprises, like fertilizer makers who use a great deal of gas and have now slashed production. Farmers are paying more to run machinery and buy fertilizer.

We want you to know that we at EconAlliance will continue to prioritize the needs of our local industries, and keep our region front and center in our decision-making process. In particular the EconAlliance Global Trade Initiative, our Agricultural Initiative, and our Energy Initiative are focused on those sectors most impacted by the military events overseas. We will monitor market conditions while we hope that peace, human rights, and the international rule of law will prevail.