Sanctions against Russia would affect the rest of the Europe badly.
After Russia recognised two western Ukrainian region as sovereign republic and ordered troops into it, the Western countries initiated sanctions against Russia considering it's action an invasion to the sovereignty of Ukraine. Britain has announced a series of sanctions against five Russian banks and three Russian billionaires and froze their assets. The prime minister hinted there's going to be more. UK would also pass sanctions against the parliamentarians who voted for the recognition of rebel areas independent.
Germany who depends it's major gas from Russia made the toughest move. It halted certification of the completed Nord Stream 2 gas pipeline, without which it’s not possible to run gas through it. The major revenue earning Russian company Gazprom which owns this pipeline and expected to supply gas will lose an enormous sum from this German decision.
US and UK decided and instructed their citizens not to do business with those part of Ukraine which Russia recognised independent. In coming days if more aggression continue from Russia or it criss cross the line of control more countries will join this sanctions. China, the largest and closest ally of Russia too has indirectly opined that Russia should respect the Minsk agreement.
Of course, these sanctions have a devastating effect on Russian GDP and the stocks prices of Russian companies plunged after it recognised regions in Ukraine. Russian currency is the most suffered among all currencies, which means Russia need more currency to buy or import now, than it wanted before. If more sanctions follow, the foreign countries that have investment in Russia will refrain from expansion and continuation of their businesses.
This is not easy for other countries as well. First of all EU is primarily depended on Russia for energy. Be it gas or Brent crude. A third of European energy need is fulfilled by Russia. Brent is the benchmark for oil price and it hiked to $100 per barrel yesterday, the highest in 7 years. When Russia suffer due to economic sanctions, other European countries suffer in winter with no gas to heat up and higher price for electricity and gas. They will have to find an alternative like renewable energy or supply of gas from US. The crude price rise has an effect all around the world. Oil price in India will hike again after the sanctions starts effective. That has an effect on inflation and that will be unbearable to the pandemic destructed countries.
War is always have economic impact and the people will suffers directly from it one way or another. So a diplomatic solution is the only hopeful end to this conflict.