A protracted war in Ukraine could be 'much worse' for European economies than the coronavirus pandemic, says Volkswagen AG CEO Herbert Diess, according to the Financial Times.

Breaking global supply chains could lead to huge price increases, energy shortages and inflation, he said. Diess also said that Europe faces a huge threat of rising inflation due to the protracted conflict in Ukraine.

Earlier this month, Volkswagen suspended its business in Russia, stopped exporting cars to the country and suspended production at its factories in Kaluga and Nizhny Novgorod.