Impacts of Ukraine War on UK Economy and Recommendations

Contemporary
Business Environment

Table of Contents
INTRODUCTION.........................................................................................................................3
Explain the main impacts of the ongoing war in Ukraine on the UK’s economy.......................3
What economic recommendations can be provided to the government of UK to remedy any
negative effects of the war in Ukraine on the UK’s economy?...................................................4
What economic recommendations, can be provided to the Central Bank of UK to remedy any
negative effects of the war in Ukraine on the UK’s economy?...................................................6
CONCLUSION..............................................................................................................................7
REFERENCES..............................................................................................................................8

INTRODUCTION
The length and severity of the conflict, and consequently the degree of restrictions and
economic instability, will determine the economic consequences of the war. Here is a breakdown
of how the UK might be impacted by trade disruption. A confrontation of this magnitude entails
significant geopolitical risk, which by itself might impede economic growth. It has been
discovered that elevated geopolitical risk causes ongoing declines in industrial output,
employment, and global commerce (Cavusgil, 2022). Thus, this essay will concentrate on the
key elements related to the implications of the war for the UK's economic situation—including
their impact, effects, and potential solutions.
MAIN BODY
Explain the main impacts of the ongoing war in Ukraine on the UK’s economy.
Hardly any immediate business ties exist among Russia and the UK. Russian monetary
incorporation with the worldwide monetary framework isn't serious areas of strength for
exceptionally, trade between the two is unassuming contrasted with the size of one or the other
economy. Be that as it may, the UK economy still could in any case be fundamentally affected
by Russia's attack of Ukraine and the actions the UK and its partners executed accordingly. Just
0.7% of the UK's commodities of administrations and items to Russia roughly 1.5% of its
acquisitions. Vehicles and their parts, assembling, and machines make up most of English
commodities to Russia. All oil and gas products and valuable metals made up practically Russia's
imports to the UK in 2019, the latest year for which information is both accessible and
unhindered by the outbreak. Four factors make it likely that the conflict will impair trade:
 Logistics will be an issue for organizations while delivery things to and from Russia. For
certain exemptions for necessities like food, drugs, and philanthropic guide, delivering
behemoths Maersk and MSC, for example, as of now have proclaimed an impeding on all
freight appointments to/from the country, enveloping all section and leave focuses
including inside Black Ocean ports, the Baltic and in Far East Russia (Chortane and
Pandey, 2022).
 Exports of "dual-use" products and technologies (i.e., those with both military and non-
military applications) to Russia are prohibited, and the sanctions could be expanded