European airlines and staples have greatest sensitivity to escalation in Ukraine-Russia crisis, Deutsche says

The exposure of most European companies' sales and profits to Russia is "not material" but the same cannot be said of their sensitivity to higher energy costs.

According to analysts at Deutsche Bank, the scant exposure of sales and profits is a reflection of the fact that the European Union's exports to the Russian Federation account for just 0.6% of the former's gross domestic product.

Indeed, exports to Russia had nearly halved since its annexation of Crimea in 2014.

Nonetheless, should the conflict escalate, then rising energy costs could become a factor with the degree of importance varying "strongly" depending on the sector.

"In the risk scenario, we assume an increase in gas prices by 50% and an increase in oil and power prices by 20%.

"We identify Airlines and surprisingly Staples as the most vulnerable sectors and expect the Energy sector to outperform."