Stephen Roach predicts that a Russian default would have a ripple effect on emerging markets, including China.

• Stephen Roach, an economist, warns that any default on Russia's sovereign debt due to the Ukraine crisis could have spillover effects on emerging markets.
• He informed CNBC's "Squawk Box Asia" that China would not remain unaffected.
• Russia's sovereign debt has been sanctioned by the U.S., and major ratings agencies have downgraded its sovereign rating to "junk" status.

Stephen Roach, an economist, cautioned that any default on Russia's sovereign debt due to the Ukraine crisis could have ripple effects on emerging markets, including China.

The default of Russia's debt will have a ripple effect on sovereign debt in emerging markets globally, including China, according to an expert on CNBC's "Squawk Box Asia." However, the expert emphasized that these risks are associated with broader issues.

Roach, a senior fellow at Yale University, stated that "China cannot continue to closely align with Russia as it launches this horrific campaign against innocent Ukraine."

He stated that it would be in China's best interest to break away from Russia, and that they should closely monitor the situation.

Following Moscow's invasion of Ukraine, the U.S. imposed sanctions on Russia's sovereign debt, banks, and central bank. As a result, major ratings agencies Fitch, Moody's, and S&P downgraded Russia's sovereign rating to "junk," stating that Western sanctions could hinder the country's ability to repay its debt.

China has said it won’t participate in those sanctions against Russia.

Last week, MSCI and FTSE Russell announced that Russian stocks will be removed from their indexes, and MSCI reclassified its MSCI Russia indexes as "standalone markets" instead of "emerging markets."

Nearly all the value of London-listed Russian stocks was already wiped out before the London stock exchange suspended trading in 27 Russian securities last week.

High oil prices are ‘stagflationary’

In Asia, oil prices increased on Monday morning following the statement from U.S. Secretary of State Antony Blinken that Washington and its allies are considering imposing a ban on Russian oil and natural gas imports.

Recently, U.S. crude surged by 7.49% to $124.35 per barrel, while Brent increased by 8.85% to $128.56 per barrel. Both reached highs not seen since 2008.

Russia is the world's third-largest oil producer and the largest exporter of crude oil to global markets, following the U.S. and Saudi Arabia.

Roach told CNBC that higher oil prices are “definitely stagflationary.”

Inflation is increasing while economic activity remains stagnant, a phenomenon known as stagflation. This condition was first observed in the 1970s due to an oil shock that caused a prolonged period of higher prices and declining GDP growth.

Roach stated that the trend of rising interest rates due to inflationary pressures on central banks worldwide may continue, but it is uncertain if it will persist for an extended period, as seen in the stagflation of the late 70s and early 80s.