{"id":106569,"date":"2022-02-25T15:55:18","date_gmt":"2022-02-25T15:55:18","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=106569"},"modified":"2022-02-25T16:40:57","modified_gmt":"2022-02-25T16:40:57","slug":"the-russia-and-ukraine-conflict","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/energy-news\/the-russia-and-ukraine-conflict\/106569\/","title":{"rendered":"How will the Russia and Ukraine conflict impact the energy crisis?"},"content":{"rendered":"

This past year has seen the inflation of energy and fuel<\/a> prices soar to some of the highest rates we\u2019ve seen. Now as Russia invades Ukraine, the energy crisis stands to inevitably escalate as more economic sanctions are put in place<\/h2>\n

In the wake of the Russia and Ukraine conflict over the past few days, the economic stock markets have seen major disruption, which has sent fuel prices skyrocketing to the highest prices since 2014<\/a>, and creating huge uncertainty around the future of the energy market, as the conflict continues to escalate.<\/p>\n

Market analysists and researchers have predicted that the current conflict between Russia and Ukraine could cause fuel costs to rise up to \u00a31.60 per litre, as fuel costs reach an outstanding eight-year high.<\/p>\n

As one of the largest producers of oil and gas in the world, Russia supplies up to 41% of gas to the EU, according to the Directorate-General for Energy for the EU. Therefore, any disruptions in Russia, including economic sanctions put into place by governments worldwide will hugely impact the supply of energy.<\/p>\n

UK prime minister Boris Johnson, upon announcing the \u2018largest ever\u2019 set of sanctions against Russia stated: \u201cWe will continue on a remorseless mission to squeeze Russia from the global economy piece by piece, day by day and week by week.\u201d<\/p>\n

\u2018Ending Europe\u2019s dependence on Russian oil and gas that has empowered Putin for too long\u2019<\/h3>\n

Furthermore, at the G7 meeting held on 24 February, Johnson announced his mission to end \u201cEurope\u2019s collective dependence on Russian oil and gas that has served to empower Putin for too long.\u201d<\/p>\n

What rising energy and fuel costs mean for the construction industry<\/h3>\n

The knock-on effects of the energy crisis will have a trickle-down effect on all sectors<\/a>, including construction. Although supply chain issues have started to resolve<\/a> in early 2022, the impact of rising fuel and energy prices could jeopardise this. One of the most pertinent impacts that the energy and fuel crisis will be on vehicle transportation, as rising costs and potential fuel shortages will make it harder to fuel contractors\u2019 vans and lorries, potentially causing a knock on the supply chain<\/a>.<\/p>\n

Another factor to think about is the impact that this will have on the manufacturing of building materials. Sectors such as the brick and concrete industry<\/a> are highly energy-intensive and use a lot of natural gas in the manufacturing process. For example, gas accounts for one-third of manufacturing costs in a brick factory, as the conditions for producing materials require a lot of heat. Therefore, it can be expected that these sectors will face adversity in the months ahead as the conflict continues to unfold, and prices rise further.<\/p>\n

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As #Russia<\/a> continues its invasion of #Ukraine<\/a>, Europe is at risk of sliding into an energy crisis due to a heavy reliance on Russian gas. Here’s a look at the countries most at risk in the case of a gas freeze or embargo. pic.twitter.com\/IPc6l5C1iW<\/a><\/p>\n

\u2014 Statista (@StatistaCharts) February 25, 2022<\/a><\/p><\/blockquote>\n