Taoiseach Micheál Martin has said Ireland will face further energy price hikes and issues with food as a result of Russia’s invasion of Ukraine.
It comes as Mr Martin and Foreign Affairs Minister Simon Coveney have rejected calls to expel the Russian ambassador to Ireland despite repeated calls from Opposition parties.
Russia has faced sanctions from the EU which have impacted their banks and have curbed exports to Russia.
Oil prices jumped on Monday as Western allies imposed sanctions on Russia.
There are fears that Russia could retaliate to these measures by reducing or even completely suspending energy shipments to Europe.
Speaking to reporters in Dublin on Monday, Mr Martin said the Government has begun “scenario planning” to help deal with the economic fall out.
He flagged potential issues with food as well as higher energy costs for people.
The Government has already moved to try and ease the financial impact Irish people are facing due to inflation.
Mr Martin said: "We are doing various scenario planning in terms of that impact.
"We don't have huge exports with Russia so on that front it will not be as great as it will be for other countries who have a much stronger trading relationship with Russia.
"I do think we will see the manifestation of it in terms of energy prices and we have to watch the food situation as well.
"It will have a destabilising impact on the overall European economy and global economy and given that we're an exporting nation it will have impacts and it will have impacts on some sectors as well."
