The unfolding tragedy in Ukraine has led to a swift international response against Russia.
In an address from the White House, President Joe Biden condemned Russia’s moves as “a flagrant violation of international law" that demanded a firm response from the international community.
What that international response looks like became clearer yesterday, with Prime Minister Boris Johnson announcing a raft of sanctions, including:
- An asset freeze on major Russian banks
- Legislation banning Russian Govt & companies from raising money in UK
- More oligarchs sanctioned
- Sanctions on major Russian companies including Rostech
- A ban on the Aeroflot airline
- A ban on high tech exports to Russia
- Limiting deposits Russians can hold in UK bank accounts
- Bringing forward parts of economic crime bill
Here's a brief look at what it could mean for Scotland.
Exports
Tens of millions of pounds of Scottish export sales could be affected by the Russian invasion of Ukraine.
The most recent export data provided by the Scottish Government shows £245million of goods and services were sold to Russia in 2019.
The figure is not broken down further by industry but is relatively small in comparison to Scotland’s largest export market, the United States, where more than £6billion was sold.
Whisky and salmon are likely to be two of the exports hit hardest by the sanctions.
Food prices
It’s not only energy which comes from Russia, but also foodstuffs, notably wheat.
This is a key ingredient for bakers and food manufacturers making bread, noodles, pasta, biscuits, cakes, pastries, cereal bars, sweet and savoury snack foods, crackers, crisp-breads, sauces and confectionery.
Russia and Ukraine together make up 25.4% of the worlds’ $44.1billion of wheat exports, making them the Saudi Arabia of food.
Energy prices
Businesses and consumers face rising energy costs.
Investec bank said the conflict, along with surging global demand, had made gas and electricity prices soar.
It expects the energy price cap, which limits what suppliers can charge, to hit £3,238 a year for the average home when it's next adjusted in October.
The cap is already due to rise by £693 to £1,971 in April.
Energy supply
Europe relies on Russia for 27% of its oil imports and 41% of its natural gas imports.
In 2021, 70% of Europe’s supply of liquefied natural gas (LNG) originated in the United States, Qatar, and Russia.
And despite how dependent Europe (outside the UK) is on Russian oil and gas, the fear is that supplies of these vital commodities could nonetheless still be a casualty of the crisis. For example, Germany has said that the opening of the Nord Stream 2 pipeline, bringing Russian gas in directly from near St Petersburg, has been frozen.
Support for businesses
The Department for International Trade (DIT) recommend that concerned companies trading with Ukraine and Russia contact the Export Support Service (ESS) on 0300-303-8955 .
The ESS helpline hours are being extended between now and the end of the weekend, from 08:00 - 22:00 Thursday-Sunday inclusive.