Rishi Sunak promises Government will keep 'careful watch' on energy markets following Ukraine invasion
Vladimir Putin’s incursion into the neighbouring country has led to warnings that prices of food could soar and inflation could rise across the globe, and Mr Sunak said officials are “already seeing volatility in wholesale gas prices”.
Ukraine is a major supplier of wheat and corn, with economists warning the cost-of-living crisis in the UK could be exacerbated with inflation rising well beyond current predictions of around 7 per cent later this year.
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Hide AdGiving the annual Mais lecture at Bayes Business School in London earlier today, Richmond MP Mr Sunak said: “Many of you will have woken up this morning to scenes of explosions in cities across Ukraine.
“The whole world is rightly appalled at Russia’s unprovoked aggression.
“The Prime Minister has called this an attack without provocation and without any credible excuse.”
He added: “I have spoken with the Governor of the Bank of England this morning, and we are closely coordinating across the financial authorities to monitor financial stability .
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Hide Ad“And we are also keeping a careful watch on energy markets.
“As a result of Russia's actions we are already seeing volatility in wholesale gas prices.
“We are with Ukraine and its people at this difficult time.”
Oil prices climbed above 100 dollars a barrel earlier today for the first time since 2014.
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Hide AdThe Government is already facing calls from its own backbenches to make a statement on what impact the invasion could have on the cost of living.
Former Minister Robert Halfon tools the Commons: “Oil prices following the Russian invasion have gone up to over 100 dollars a barrel.
“Energy prices are rocketing.
“This is going to impact millions of people across the country and make petrol and energy even more unaffordable.”
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