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March 10, 2022

Anna Murray 

In retaliation for Russia's invasion of Ukraine, US President Joe Biden placed a ban on Russian oil and other energy imports on March 8. Oil and gas prices are already being influenced by the uncertainty and threat of penalties and disruptions. Fuel prices are rising amid concerns that Russia's invasion of Ukraine may cause a global economic crisis. Oil surged to a high of US$139 a barrel at one time, the highest amount in over 14 years, before falling somewhat. President Biden acknowledged that the action could push up oil prices even more.

The Federation of Wholesale Distributors, the UK's trade association for food and drink distributors, has warned that rising fuel costs will raise the price of groceries and food in restaurants.

According to one estimate, Ukraine and Russia are both major players in the world's wheat supply, accounting for over 30% of worldwide wheat exports. As inflation rises, households are confronting a cost-of-living dilemma. "Food price inflation is already happening, but this is going to make it worse," said James Bielby, CEO of the Federation of Wholesale Distributors. "There will be charges passed on to customers, and then obviously to end users as well."