Russia's Ukraine war 'will negatively affect' eurozone economy, says Lagarde

Russia's war on Ukraine has "substantially" increased the risks to the eurozone economy and will have a negative impact on growth, European Central Bank President Christine Lagarde warned Thursday.

"The Russian invasion of Ukraine will negatively affect the euro area economy and has significantly increased uncertainty," she told reporters, warning that supply chain upsets and higher energy costs could drag down consumption and investment.

"The risks to the economic outlook have increased substantially," she added.