Russia: Johnson urged to impose stronger sanctions by Tugendhat
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The crisis unfolding in Ukraine thanks to Russia’s invasion will have effects the world over, and the UK is not shielded from the effects of a war involving one of the world’s largest energy suppliers and exporters. A cost of living crisis is already gripping the UK, and sanctions on Russia from all over the world are likely to only exacerbate the skyrocketing price of living.
As petrol prices today hit an all-time high, alongside the rising costs energy and the threat of cyber-attacks from Russia, the situation in Ukraine is only going to intensify what is already happening in the UK.
According to data compiled by KIS finance, nearly a third of Brits are reporting genuine concern that rising prices and the heightened cost of living will have a negative effect on their lives in the immediate future.
Holly Andrews, Managaing Director as KIS finance told Express.co.uk: “At a time when the cost of living crisis is deepening, the global impact of the situation in the Ukraine looks set to make the situation even worse.
“Rising costs on everyday essentials, alongside increasing interest rates will stretch household budgets and be a further blow to those trying to get onto the property ladder.
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“Shortages in the housing market are forcing prices up at the same time that rents are at some of their highest rates ever.
“With the cost of borrowing increasing alongside the rising cost of living, those saving for a deposit will find this even more challenging.
“Similarly those applying for a mortgage may find it more difficult to meet income requirements, as disposable income is hit by the rising cost of essentials.”
Boris Johnson will announce new sanctions at 5pm in the House of Commons.
What will sanctions on Russia mean for the UK?
Out of the likely forthcoming additional sanctions on Russia, the one that – if enacted – could have the biggest shock on the UK is the proposed ban of Russia to use the SWIFT payments system.
Belgium-based SWIFT – Society for Worldwide Interbank Financial Telecommunication – is a messaging network widely used by banks to send and receive money transfer orders or information.
It is overseen by central banks in the United States, Japan and Europe, and while not well known outside of the banking sector, it is a vital worldwide financial transaction system used to transact trillions every single day.
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Cutting it off would result in severe disruption for Russia’s businesses, particularly its enormously powerful oil and gas industries.
It’s a move that has been backed by Labour leader Sir Keir Starmer.
However, it has emerged today that the EU is unlikely to cut Russia off just yet.
Mr Johnson already announced today that the UK would be moving toward no reliance on Russia for gas.
The UK currently only gets three percent of its gas from Russia, according to KIS Finance research, but the shock to the markets is likely to cause prices to rise across Europe and the rest of the world.
Average electric and gas bills will hit almost £2,000 year when the Government’s price cap is raised in April, but the events in Ukraine could see this rise even further.
The same effects are expected for petrol prices – while they have been rising for some time now, industry experts are predicting that prices could soon reach £1.50 per litre and beyond.
Russia is the largest exporter of oil after Saudi Arabia, and its control over such a crucial commodity is likely to make prices jump once again.
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