Associate Professor Steven McCabe, a political economist at Birmingham City University, has warned the Russian invasion of Ukraine will see the UK hit with further price hikes around fuel, gas prices, wheat and vital minerals used in key manufacturing processes.
“Ukraine, like the country invading it, has huge natural resources. Since the fall of Communism, we’ve become used to a steady supply of raw materials and basic foodstuffs from Russia and former ‘satellite’ states including Ukraine.
“We’re already seeing the impact of potential conflict: crude oil is up 8% to $105 a barrel. The price for next day delivery of gas is up 40%. This will mean we pay far more for fuel for our vehicles and heating our homes.
“Ukraine is the ‘breadbasket’ of Europe. The tensions in the Eastern European region has caused the price of wheat to soar by 20%. This will translate into higher prices for basic foodstuffs including bread and pasta.
“Additionally, Russia and Ukraine export a number of vital minerals including aluminium, copper, nickel, platinum, and palladium - the trading price of which have all increased and will inevitably cause prices of finished goods to rise. Unfortunately, given we’re in a cost-of-living crisis, conflict with Russia, even if only economic, will punish all UK citizens as much as it hurts ordinary Russians.
