Russia’s Ukraine invasion puts biz leaders on edge

RUSSIA’S invasion of Ukraine, its neighbor in Eastern Europe, has worried business leaders in Cebu, who cite its possible effects on a local economy still on its way to recovery after being pounded by the Covid-19 pandemic and Typhoon Odette (Rai).The Kremlin’s military action against Ukraine, a former Soviet republic, on Thursday, Feb. 24 sent Brent crude, the global energy benchmark, topping $100 (over P5,000) a barrel for the first time since 2014.If the conflict drags on, businessman Steven Yu said, it would be a “perfect storm for the business sector” here, as a prolonged conflict could send oil prices soaring.Russia is the world’s third-largest oil producer and second-largest natural gas producer.“A resolution and a halt to the conflict is an immediate solution,” said Yu, president of Mandaue Chamber of Commerce and Industry.Yu, however, said the Philippine government’s achievement of “solid economic fundamentals in the past years,” because of “competent economic managers will momentarily soften the negative impact of the conflict.”Filipino Cebuano Business Club chairman Rey Calooy urged the National Government to focus on the country’s food security.“When in time of war, money becomes worthless. Food is gold,” he said. “We are far from the area of conflict, but economically we cannot avoid the impact.”Calooy urged the Philippine Government to check the country’s oil reserves and see if these could last for months.A prolonged Russia-Ukraine conflict would mean trade disruptions for the Philippines as the country is a trading partner of both European countries, Calooy said.The Philippines, Calooy said, exports electronic circuits worth over $4 million to Ukraine, and the country receives imports from Ukraine such as cereals that are used in making bread.Some Russian imports include iron and steel, said Calooy.The other thing Calooy worries about is the tensions between the People’s Republic of China and Taiwan (Republic of China).“Kuyaw molihok ang China kay ally man nila ang Russia. Daghan ra ba OFWs sa Taiwan,” he said. (It could be dangerous if China acts because Russia is its ally. And there many overseas Filipino workers in Taiwan.)Communist China has been claiming Taiwan, a self-governed democratic territory, as a breakaway province, and there are fears it would reunify Taiwan with the mainland by force, inspired by Russia’s attack on Ukraine.Cebu Chamber of Commerce and Industry president Felix Taguiam hopes for a fast resolution to the conflict. “If fuel prices spike, all goods and services will feel the negative effects,” he said.To ensure food accessibility and help vulnerable sectors cope with the high oil prices, the national government said Thursday it will provide fuel vouchers to public utility vehicle drivers, farmers and fisherfolk.In a statement Friday, Feb. 25, 2022, the Development Budget Coordination Committee (DBCC) said the government is preparing P2.5 billion for the Department of Transportation’s Fuel Subsidy Program that will provide fuel vouchers to over 377,000 qualified PUV drivers operating jeepneys, UV express, taxis, tricycles and other full-time ride-hailing and delivery services nationwide.Separately, the Department of Agriculture has a P500 million budget to provide aid through “fuel discounts to farmers and fisherfolk who either individually own and operate agricultural and fishery machinery or operate through a farmers organization or cooperative. This will help mitigate the impact of elevated fuel prices on production and transport costs of farm and fishery products,” the DBCC said.Stronger sanctionsElsewhere around the globe, a raft of new, stronger sanctions against Russia from Japan, Europe, Australia, Taiwan and others and a cascade of condemnation from the highest levels poured in Friday.World leaders on Friday began to fine-tune a response meant to punish the Russian economy and its leaders, including President Vladimir Putin’s inner circle.France and its European allies have decided to “inflict very severe blows on Moscow,” further sanctioning individuals, as well as penalties targeting finance, energy and other sectors, French President Emmanuel Macron said Friday.Macron also said the EU has decided on economic aid for Ukraine in the “unprecedented” amount of 1.5 billion euros ($1.68 billion).At the United Nations, officials set aside $20 million to boost UN humanitarian operations in Ukraine.Russia’s civil aviation authority has banned UK flights to and over Russia in retaliation to the British ban on flights to the UK by the Russian flag carrier Aeroflot as part of the UK’s sanctions over Russia’s invasion of Ukraine.Countries in Asia and the Pacific have joined the United States, the 27-nation European Union and others in the West in piling on punitive measures against Russian banks and leading firms. The nations have also set up export controls aimed at starving Russia’s industries and military of semiconductors and other high-tech products.Prime Minister Fumio Kishida announced Friday new punitive measures that included freezing the visas and assets of Russian groups, banks and individuals, and the suspension of shipments of semiconductors and other restricted goods to Russian military-linked organizations.Japan’s new sanctions follow an earlier set of measures that include the suspension of distributing and issuing new Russian government bonds in Japan — a move aimed at cutting funding for Russia’s military — a trade ban with two Ukrainian separatist regions and the freezing of their assets and visas.Tokyo’s response to the invasion may be linked to a deep worry in Tokyo over China’s increasingly assertive military actions in the region.New Zealand Prime Minister Jacinda Ardern announced targeted travel bans against Russian officials and other measures.South Korean President Moon Jae-in said his nation will join international sanctions, but won’t consider unilateral sanctions.Taiwan announced Friday that it would join in economic sanctions against Russia. Sanctions could potentially be focused on export control of semiconductor chips, local media reported.While most nations in Asia rallied to support Ukraine, China has continued to denounce sanctions against Russia and blamed the United States and its allies for provoking Moscow. Beijing, worried about U.S. power in Asia, has increasingly aligned its foreign policy with Russia to challenge the West.“At a time when Australia, together with the United Kingdom, together with the United States and Europe and Japan, are acting to cut off Russia, the Chinese government is following through on easing trade restrictions with Russia and that is simply unacceptable,” Australian Prime Minister Scott Morrison said Friday. He cited a report in The South China Morning Post that China had announced it was fully open to Russian wheat imports. (KAL, CTL, AP)