The South West economy is likely to be adversely affected by Russia’s invasion of Ukraine but the region’s firms are united in supporting sanctions against the aggressor.
Business leaders said numerous South West companies were either exporting or importing or selling services to Russia and Ukraine when the Kremlin launched an attack on its neighbour. And those businesses are united in cutting off all trade and dealings with Russia - even though it will be financially damaging for them.
But businesses are also being asked to remember that the invasion was ordered by Russian President Vladimir Putin and many ordinary Russians appear not to support it.
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And those South West businesses that do have trade links to Russia are being urged to keep lines of dialogue open, while ceasing business operations, in a bid to support ordinary Russians and be in a position to rebuild relationships when the conflict is resolved.
South West companies which have business relations with Russia are spread across many sectors including manufacturing, mining, agriculture and professional services, such as architecture and design, and tourism too.
The South West Business Council (SWBC) said that in addition to exports going to Eastern Europe, the South West imported items such as timber, for construction, from Russia, and wheat and sunflower oil from Ukraine, the famed “breadbasket of Europe”.
But Tim Jones, SWBC chairman, said businesses were resolute in their opposition to the Kremlin’s attack and said: “Every business I have talked to has said that whatever contracts it has (with Russia) at the moment will stop.”
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In addition to disrupting supply chains, the conflict is also likely to hike inflation, particularly energy prices.
Stuart Elford, chief executive of Devon and Plymouth Chamber of Commerce, said: “Businesses are already struggling with supply chain issues, cost increases and massive price hikes in the wake of Brexit and the pandemic. The situation in Ukraine is undoubtedly going to make that worse for many companies, which they can ill-afford.
However, everyone is acutely aware that pales into insignificance when we see the terrible situation facing our friends in Ukraine and British businesses stand ready to support them however they can.”
Linda Middleton-Jones, managing director of Devon-based overseas trading organisation International Trade Matters, said businesses were already being affected by the situation in Ukraine and cited one consultancy firm which had business in Russia which said it had been “haemorrhaging customers” in Eastern Europe.
But Ms Middleton-Jones, impressed by international unity against the Russian aggression, stressed South West businesses should stop trading with Russia - but not sever all contact.
She said: “South West businesses will be affected and need to be aware of sanctions and sensitivities, but this is not a war with the Russian people for whom we have had excellent relationships.”
Ms Middleton-Jones led a Plymouth business delegation on a trade mission to its Russian twin city Novorossiysk in 2018, and said: “They showed us the utmost respect and hospitality, and said they were not involved in politics but just wanted to have their lives and trade.”
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She has been in contact with South West companies that had trade with Russia and are now asking for advice. She said: “They are keeping in contact with Russian customers so that when this is over, whatever that looks like, those people will want to trade again, So keep communication open, you may not be able to trade but keep the door open for the future.”
How to contact William Telford and Business Live
Business Live's South West Business Reporter is William Telford. William has more than a decade's experience reporting on the business scene in Plymouth and the South West. He is based in Plymouth but covers the entire region.
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Plymouth’s twinning with the Black Sea port of Novorossiysk, close to the Crimea which was annexed by Russia in 2014, was formed after World War II because both cities suffered widespread destruction from the Nazis.
Despite being a major port, Plymouth does not receive much shipping from Russia and Dave Petherbridge, managing director of Cattedown Wharves, said: “We have very few Russian registered/owned vessels calling at Cattedown. The last vessel was a 3,500-tonne coaster bringing a cargo of animal feed from Amsterdam which arrived in September 2021. I don’t currently see any issues in terms of our core business moving forward. We are also following guidance from the DfT and It’s likely that any Russian owned, controlled, chartered or operated vessels will be denied at source by other parties earlier in the supply chain.”
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