The number of U.K. exporters fell in the two months since Russia invaded Ukraine, underscoring the impact that sanctions against the government in Moscow is having on global trade.
There were 4% fewer exporters in Britain in April than February, according to a report by the researcher Coriolis for the Institute of Export & International Trade, a trade body. Those companies had 11% fewer employees and an 8% drop in revenue.
The figures tally with other surveys showing that the war in Ukraine is starting to drag down growth and activity much further afield. The jobs website Indeed earlier this week said new help-wanted advertisements stalled in 21 European counties including the U.K. since the invasion, with countries and sectors linked to Russia hardest hit.
The data give an early indication of how export volumes will be affected when official figures are published in the coming months. Britain’s exit from the European Union has already hit trade patterns with the bloc, and the impact of sanctions on Russia threatens to exacerbate that.
The institute said the government’s response to the invasion has been a deterrent to exporters concerned that their goods might be resold to Russia, which would make them liable to sanctions.
“Don’t take U.K. exporters for granted,” said Marco Forgione, director general of the institute. “They rely on their international networks for their trade—and those networks are under severe strain.”
Separate research by the London School of Economics’ Centre for Economic Performance found that the number of U.K.-EU trading relationships shrank by a third since the Brexit trade deal was implemented in January 2021. It suggested that smaller businesses couldn’t afford added costs to comply with tighter border rules.
