In a research note, the chief European economist at Goldman Sachs, Sven Jarre Steehn, stated that the escalation of tensions on the border between Russia and Ukraine could spread to the European economy, leading to lower trade with the region, tighter fiscal conditions and lower gas supplies.

This comes at a time when strategists have warned that the recent escalation of tensions between Russia and Ukraine may have repercussions for the European economy, which is striving to recover from the effects of the Corona virus.

According to US website CNBC, Goldman Sachs Bank does not expect "a significant impact on trade, given that eurozone exports to Russia and Ukraine are relatively limited."

Steehn noted that "the financial implications of escalation on the eurozone will also be limited, as European banking with the two States is limited."

On the other hand, Goldman Sachs believes that the effect may target gas supplies in particular, adding that "this effect must be monitored."

Sven Jari Steehn highlighted: "Rising gas prices may not significantly affect consumers due to government support plans, but lower gas supplies can cause major (albeit temporary) production disruptions across Europe."

Russia is the largest gas provider in Europe, usually supplying the continent with 30 to 40 percent of gas demand through pipelines.

With regard to assets, the economic analyst says that the Russian-Ukrainian crisis has "guaranteed opportunities to purchase affected regional and global assets."

He added: "There will be significant impacts on asset prices in the near term, if Russia makes an additional incursion."

The massive build-up of Russian troops and military equipment around the country's borders with Ukraine infuriated NATO and the West, although Moscow has repeatedly denied any intention of invading its neighbour.

At a press conference with British Prime Minister Boris Johnson, Tuesday, Ukrainian President Volodymyr Zelensky warned that "any conflict will extend beyond the two countries and will become an all - out war."