Ukraine: Resident emotional as she hides in basement
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Oil and gas prices have already spiked to record highs following Russia’s military assault on Ukraine. Russia’s military breached the border in a number of places, in the north, south and east, including from Belarus. At least seven people are known to have been killed, including civilians, following several explosions across the country.
Prime Minister Boris Johnson said he was “appalled by the horrific events in Ukraine” and that President Vladimir Putin “has chosen a path of bloodshed and destruction by launching this unprovoked attack”.
But Britain may feel the impacts of the Kremlin’s decision much sooner than it thinks.
Ukraine is considered the “breadbasket of Europe,” and an invasion would result in the food supply chain getting “hit hard,” said Alan Holland, CEO and founder at sourcing technology company Keelvar.
That’s because Russia and Ukraine account for roughly 29 percent of the global wheat export market.
Kiev also produces barley, rye and corn.
Alan Holland, CEO and founder at sourcing technology company Keelvar, told CNBC that the food supply chain will be “hit hard”.
He added: “Even though harvesting season is still a few months away, a prolonged conflict would create bread shortages [and increase consumer prices] this fall.”
Wheat and corn prices are already soaring and fertiliser exports have already been hit hard following an expert ban from Moscow.
Any further disruptions to natural gas supplies may only exuberant this – rising the prices of food across the UK.
But analysts also warn that manufacturing supply chains will be disrupted.
Both countries are large suppliers of metals and other commodities, including copper to nickel.
Ukraine has steadily increased its exports over the years, and is now a “huge provider” of raw materials, chemical products and even machinery like transportation equipment.
Dawn Tiura, president at Sourcing Industry Group, said: “Ukraine’s currency began declining in value since Russian troops started gathering at the border.
“This will increase the cost of their exports.”
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Russia controls around 10 percent of global copper reserves and is a major producer of nickel.
Nickel is a key raw material used in electric vehicle batteries, and copper is extensively used in electronics manufacturing and construction of homes.
Mr Johnson will address the nation at midday today.
He will also speak to fellow G7 leaders and is calling for an urgent meeting of all NATO leaders as soon as possible following Russia’s latest aggression against its neighbour.
The Prime Minister will then address the House of Commons at 5pm.
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