Home Business News UK retailers warned of ‘supply chain risks’ due to Putin’s block of ‘the Black Sea Grain Initiative’

UK retailers warned of ‘supply chain risks’ due to Putin’s block of ‘the Black Sea Grain Initiative’

by Mark Channer War Correspondent
30th Aug 23 2:32 pm

British retailers are being warned that there are “supply chain risks” due to Vladimir Putin’s block on the Black Sea Grain Initiative.”

The export ban on grain being allowed to leave Ukraine through international waters of the Black Sea could now hinder efforts to bring food prices lower.

The reduction of food inflation in the UK is now at risk supermarket bosses are warning amid the restriction on grain exports.

Read more on Russia-Ukraine war:

Thousands of Russians are sent to the Gulag ‘for refusing to obey orders to return to the front in Ukraine’

The US to provide Kyiv with $250 million military aid package of deadly missiles and HIMAR munitions

Prigozhin’s ‘death not favourable’ for the Kremlin as Wagner mercenaries made ‘achievements during the war’

Russia rocked by ‘biggest ever drone attack on Russian soil’ which ‘destroyed’ more than 20 targets

According to the British Retail Consortium (BRC) in August of this year food prices increased by 11.5%, which is slight decrease from the 13.4% in July and is the slowest rate since September last year.

Shoppers will have noticed the soaring prices of certain cooking oils, meats and potatoes as supermarkets have been forced to up the price of various items due to Russia’s war in Ukraine.

Ukraine produces one third of the world’s sunflower oil which did account for almost half of sunflower oil exports globally.

This plays a crucial role in ensuring food security across the world, this is has now been hampered by Putin not allowing shipping to resume, causing prices in the UK to hike.

The BRC’s chief executive, Helen Dickinson, said that she fears that Putin’s actions could have an impact in food inflation being reduced in the UK.

Dickinson told the Telegraph, “While inflation is on course to continue to fall thanks to retailers’ efforts, there are supply chain risks for retailers to navigate.

Russia’s withdrawal from the Black Sea Grain Initiative and its targeting of Ukrainian grain facilities, as well as poor harvests across Europe and beyond, could serve as potential roadblocks to lower inflation.

“A potential £400 million hike to business rates bills from next April would certainly jeopardise efforts to tackle inflation unless the Chancellor intervenes.”

She added, that tax changes had increased consumer pressure as this has generated higher prices in some drink sectors, “These [inflation] figures would have been lower still, had the Government not increased alcohol duties earlier this month.”

Leave a Comment

You may also like


Sign up to our daily news alerts

[ms-form id=1]