Russia's invasion of Ukraine and subsequent acceleration of inflation could have a significant indirect impact on the Spanish economy and banks, even though their direct exposure is very limited, the Bank of Spain said on Wednesday.

Spanish lenders in general rank among the less exposed to Russian credit, with the Spanish central bank estimating their credit risk at just above 700 million euros ($742 million).

However, the central bank said that a potential combination of higher prices and higher interest rates in the short term could erode households' and companies' real income and hit the sectors already heavily affected by the COVID-19 pandemic, such as tourism and transport.

"The indirect effects of the new shock, stemming from the impact on uncertainty, inflation and economic activity, can be significant," the Spanish central bank said in its semiannual financial stability report.

(Reporting by Jesús Aguado; additional reporting by Emma Pinedo; editing by Andrei Khalip)