UK firms hit by effects of Russian sanctions since start of war in Ukraine

Nearly two-thirds of UK firms have been hit by the effects of Russian sanctions since the start of the war in Ukraine, data shows.

A survey from insurance buyer Mactavish reported that 71 per cent of British businesses had assets that have been directly affected by sanction measures imposed on Russia, Daily Mail reports.

Nearly half of these flagged up increases in costs and disruption to their production lines, while 44 per cent said they had lost suppliers and 42 per cent had experienced workforce issues.

The finance sector had fared the worst in the wake of the invasion, with 92 per cent of businesses in the industry suffering from sanction measures due to their exposure to assets and funds located in Russia.

Some 84 per cent of companies in the aviation industry reported losses as they struggled with leased aircraft being trapped in Russia.

Mactavish boss Bruce Hepburn said the pandemic and the war 'have exposed the severe limitations in the industry, characterised by more cover restriction, less capacity, higher prices and more disputes.'