A number of western sanctions have hit the Russian currency and people very hard. The country's central bank has doubled key interest rates to 20 percent to halt the fall in the value of the Ruble. Ruble is now down to record 100 Rubles to a dollar -- worst since 1998.

Long queues can be seen at ATMs across Russia as people fear a breakdown of electronic banking. There is a ban on transferring foreign currency abroad. The country has made it mandatory for exporters to exchange 80 percent of their foreign currency proceeds for Rubles.

These restrictions could impact 1,50,000 tourists who are out of the country at the moment. The war could trigger food inflation in countries dependent on grains from Russia and Ukraine. With Russia closing its air space to 36 nations, air freights could get more expensive as planes will have to take alternate routes.

To discuss the impact of sanctions on Russia and on the world economy, CNBC-TV18 spoke to Ajai Malhotra, former Indian envoy to Russia, Subhash Chandra Garg, former Indian finance secretary, and Fred Weir, special correspondent at Christian Science Monitor.

Malhotra said: "India has never observed unilateral sanctions against any country. India abstained and clarified, it was the right decision as our position has been evolving." He does not expect any serious blowback from the US on India's stance.

Garg said: "Don't think India can form a bilateral system with Russia in light of global sanctions. Suspect that there would be a hardening of sanctions, more measures at play. We need to think should we try to divert some of our oil, defence trade away from Russia."

Fred said "some new global order will emerge from this".

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Catch latest from CNBC-TV18's coverage of Russia-Ukraine war

First Published:Mar 3, 2022 5:52 PM IST