visaoperations

1
What is the reason the Ukraine crisis could
trigger worldwide price increases

• Russian troops have begun a military attack on
  Ukraine with bombs exploding near major cities
  throughout Ukraine.
• Western nations have introduced sanctions that
  are designed to weaken the Russian military and
  economy.
• The war as well as the economic aftermath could
  have a significant impact on the people of the
  globe.

2

• The cost of energy, fuel, and airline tickets
  could increase
• The war has brought the price of oil to the
  highest point in over seven years. Future prices
  for gasoline soared by 60 in one day.
• Russia is the second-largest producer of
  crude oil. It is also the world's biggest natural
  gas exporter. Natural gas is crucial to heating
  homes as well as power planes and filling
  vehicles with gasoline.
• The UK receives only 6percent from crude
  oil, and 5percent for its natural gas in Russia
  as compared to the EU getting nearly 50 of the
  gas it consumes from Russia.
•  There is a risk that there is a possibility
  that President Vladimir Putin may "weaponize" its
  natural resources by cutting down the amount of
  gas available to Europe as a reaction to
  sanctions. If a country that relies on Russian
  supplies is receiving less gas, it will need to
  buy it back, which could impact the gas supplies
  for other nations.
• This is the reason British bills and energy
  prices remain affected in a similar manner as
  European ones.

3

• Food prices affected
• The ripples of that Russian attack on
  Ukraine could also impact grocery stores across
  the globe.
• Russia and Ukraine were once called "the
  breadbaskets of Europe" export around one-quarter
  of the world's wheat, and half of its sunflower
  products including seeds and oils. Ukraine also
  exports large quantities of corn to other
  countries all over the world.
• The analysts have warned of war's potential
  to affect the production of grain and may even
  double the global price of wheat.
• This can be a major issue for consumers in
  countries such as Egypt, Turkey, and many
  countries in North Africa in particular, that
  rely on corn and wheat from the region.
• More than 40 percent of Ukraine's grain and
  exports to corn went to the Middle East or Africa
  last year. And disruptions to supply could hinder
  their availability in these regions.
• The UK in contrast generally produces more
  than 90 percent of the wheat consumed in the
  country.
• However, Russia is also among the biggest
  exporters in the world of fertilizers. The cost
  of fertilizers has already raised since they ran
  out of them in the past year, which means farmers
  might need to pay more to purchase them, and also
  produce their harvests.

4

• The investment market could be hit
• Russian stocks plummeted by up to 45
  percent after the news came out of the escalation
  in Ukraine including banks along with oil and gas
  companies being among those most affected.
• This also caused massive declines in stock
  markets all over the world. In Europe, Britain's
  FTSE 100 index fell more than 3 percent, while
  the German Dax index was close to five percent
  lower.
• As the conflict intensifies market prices
  are likely to be more volatile.
• The first reaction of many people in
  response to "the market" is that they're not
  directly affected by it, since they don't invest
  funds in shares and stocks.
• However, there are many people who have
  pensions, whether privately or through employees
  who have their savings put into stocks.
• The amount they can save in their savings
  accounts is determined on the basis of the
  investment's performance.
• The majority of pension savers let
  professionals pick where to invest their money to
  grow it. A wide range of falls in the price of
  shares like those that occur on Thursday is
  likely to be negative for pension savers.
• To protect their investment portfolios
  certain investors or savers may consider moving
  their assets or money to the traditional "safe
  havens" such as gold.
• However, pension savings, just like other
  investments, are generally an investment for the
  long term. Experts recommend not to be concerned
  about the short-term fluctuations upwards or
  downwards.

5

• Cost of living increases
• The households of the US, as well as the UK,
  are already feeling the pinch due to the rising
  price of living and wages are struggling to keep
  up.
• Inflation, which is a measure of how quickly
  your cost to live increases over time, reached
  7.5 percent during January, in the US The highest
  rate observed for the last time since February
  1982. The rise was largely driven by the cost of
  food and energy.
• If the supply of food, energy, and other
  commodities such as metals are stretched due to
  the Ukraine-Russia conflict and the price of
  these commodities could go upwards even more.
• The Centre for Economics and Business
  Research think tank said that the rate of
  inflation in large Western economies could be at
  or near 10.
• It could also encourage central banks, such
  as that of the US Federal Reserve or the Bank of
  England to increase the interest rate, meaning
  borrowing money becomes more expensive.
• The concept is that when borrowing becomes
  more costly and people have less money. This
  means that they'll buy less and prices will stop
  growing as fast.
• In the UK around 2.2 million homeowners
  with mortgages tied to the Base rate of the Bank
  of England will see their repayments increase,
  for instance, putting additional pressure on the
  budgets of households.

6

• Cars may be more costly
• Russia is among the biggest producers of
  metals that are used in automobile manufacturing,
  like palladium or nickel.
• Nickel, for instance, is utilized in
  lithium-iron batteries, as well as palladium in
  catalytic converters.
• The automotive industry is struggling with
  a chip shortage and supply chain problems due to
  the outbreak. In the UK there is a chance that
  one in five almost-new cars is now sold for more
  than brand new equivalents as their prices are
  increasing According to the Auto Trader website.
• If Russia decides to stop the supply of
  these metals as a reaction to sanctions, these
  supply issues could become more severe, by
  forcing car manufacturers to look for alternative
  sources, and the prices are expected to increase
  in the process.
• Countries like South Africa and Zimbabwe
  also produce significant quantities of palladium.
  However, the demand has been growing.
• Russia is also the home of factories for
  brands such as Stellantis, Volkswagen, and
  Toyota. Manufacturing facilities in the region
  might be struggling to run under sanctions,
  thereby limiting the production and availability
  of new vehicles.
•