As Russia's invasion of Ukraine is sending shock waves across Europe, Southeast Europe is bracing up to bear the brunt of the economic, financial and security consequences. The economies in the region are heavily reliant on Russian gas and for most of them Russia is a major trading partner and investor. For tourism-dependent economies like Bulgaria, Croatia and Montenegro, it is also a key feeder market. The indirect consequences of higher energy and raw material prices and supply chain disruptions are expected to impact production, further fuel inflation and slow down recovery. The onset of the Russian assault sent the regional stocks into a sharp fall, flights to and from Russia were discontinued, Moldova and Serbia suspended wheat exports, and Russia's Sberbank exited Southeast Europe. Thousands of refugees started pouring into Romania and Moldova. NATO said that it is deploying additional defensive land and air forces on its eastern flank.