Strategy needed to stabilise businesses amid Russian oil boycott - Chamber

Business leaders are calling for increased measures to protect businesses against the growing overheads expected as a result of the UK 's latest decision to boycott Russian oil.

The announcement was made by Boris Johnson on Tuesday 8 March where he declared that the UK will mirror decisions made by the US to phase out the import of Russian oil and oil products by the end of 2022.

The EU has also vowed to reduce demand for Russian gas by two-thirds this year.

The government said the transition period will give the market, businesses and supply chains more than enough time to replace Russian imports, which make up 8 per cent of UK demand. However, given the rise in the cost of living, there are increasing concerns that businesses will be unable to cope with the added pressures that the ban will impose.

Erin Henwood (pictured), policy advisor at Greater Birmingham Chambers of Commerce, said: “The Prime Minister 's announcement that the UK will ban the import of Russian oil by the end of the year is the latest step taken by the UK Government to bring Russia 's attack on Ukraine to a halt. Steps like these - taken in conjunction with other world superpowers - will hurt Russia 's economy and are intended to help change the course of the war.

“Given the ongoing cost of living crisis, it is inevitable that this action will have a knock-on impact on already rapidly growing overheads facing businesses, as evidenced by early analysis from our latest Quarterly Business Report. The Government must take considered steps towards alleviating energy prices and helping businesses in the coming months, particularly with inflation expected to hit 8 per cent later this month. ”

“Businesses across the UK - who have united in horror at the latest events and whose outpouring of support for the people of Ukraine has been heartening - will be expecting the Government to take such steps as part of a measured long-term strategy to prompt stability in Europe whilst addressing the growing concerns of firms across the country regarding the cost of doing business.

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