Russia’s invasion of Ukraine this week sent shock waves around the world. Accounting and finance professionals are now bracing themselves for economic shocks that are sure to follow.
It’s too early to predict the human toll, the long-term severity of the crisis, or the duration of the hostilities, but the short-term implications are clear. Sanctions are being levied, and the value of the rouble has plunged.
And as Russia is one of the world’s largest oil producers, fuel prices are expected to surge throughout the world.
Bob Sannerud, CPA, CGMA, is CFO of air ambulance company Life Link III, which operates in the US states of Minnesota and Wisconsin. His company is bracing for a fuel cost increase, which seems inevitable.
The price of Brent crude oil, which surpassed $100 a barrel on Thursday before receding somewhat on Friday, “is going to have a direct impact on fuel,” Sannerud said Thursday. “Last year, we spent somewhere around $1.5 million on fuel. Prior year, we spent $1.1 million. We’re going to see that going up. And it’s our single largest variable cost.”
It’s also far from the only concern related to commodities in the region. Ukraine is one of the world’s top…
