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BRACE FOR IMPACT: THE RUSSIAN INVASION AND THE EFFECTS TO PHILIPPINE ECONOMY

[by Rick Daligdig]

Finally, the silence was broken. Russian President Vladimir Putin gave green light to pursue on what he called “special military mission” to Ukraine. “For this, we will strive to achieve demilitarization and de-Nazification of Ukraine,” said Putin, promising to bring “to court those who have committed many crimes, responsible for the bloodshed of civilians, including Russian citizens”. He said that he did not want an “occupation” of Ukraine, but its “demilitarization”. Superworld countries like US, Australia, Japan and international organizations like European Union, NATO and United Nations vehemently denounce the attack of Russia to Ukraine and promise to uphold the strictest economic sanctions. As the world watches the developments of this incident the question is, How it will affect to our country?

First Priority: Bring them back home…Safely.

There are reports that some Filipino workers are express their willingness to repatriate to our country and government quickly put up a command station to accommodate our kababayans who want to escape on the on going conflict. Also, Pres. Duterte instruct to all concerned agencies such as DFA, OWWA, and DOLE to extend help in any way to help our distress workers from Ukraine.

The Chilling Effect: Stocks Stumbled Down

Yesterday, we saw that the local bourse reacted to the latest developments in the Russia- Ukraine conflict. Philippine Stock Exchange index (PSEi) was down  by 151.98 points or 2.06% to close at 7,212.23 on Thursday, while the broader all shares index fell by 75.01 points or 1.91% to 3,842.85. In broader picture, regional peers also in negative territory signifies that investors are very cautious and watching closely for any developments happen.

BRACE FOR IMPACT! OIL PRICES AND COMMODITY PRICE WILL INCREASE

Geographically, Philippines is very far from the origin of conflict, but the effects of it is very near in our stomach. Russia is one of the largest oil producing country in the world. After the Russia announces its attack to Ukraine, World oil prices shoot up to 103.78 per barrel, the highest since 2014.

What does this mean? So fasten your seatbelt for a more series of oil price hikes (OPH) in the local pump. Economic managers estimated that regular gasoline could be as high as Php 79/liter while diesel will range to Php 75/per liter. One more thing, Ukraine is also one of the exporters of flour and Phils. is one of the importers of it. So you know what happens next.

With these, the production cost of manufacturers will go up which will in return, they will recover it by adjusting the prices of the goods. Inflation will be at risk to go upwards due to price pressures. The receiving end? We, consumers who are making a grasp on the effects of pandemic in our livelihood will make our budget tighter. As early as now, government should place measures that could help to mitigate the impact in terms of our economy. The financial support to the transport sector must be quickly release to lighten up their burdens. Larger fuel discounts to all motorists is one of the options. In the economic view. I’m not in favor in reducing or cancelling the collection of excise taxes to fuel products because it will do more harm than good in the long perspective. What is more feasible is to provide assistance to those who are directly affected by this incident. Government must maintain the stability of prices of the commodity in the markets.

Above all the measures we mention, We are hoping for the best that this would not escalate to a greater conflict and diplomacy must be proceed in resolving the issues. So guys we must Brace for the Impact… at least for now.

DIYARYO MILENYO is a free and independent online media outfit that publishes events happening in the local communities and current issues that matter to the public with local, national and global implications. DIYARYO MILENYO is composed of volunteer journalists and community writers scattered in various parts of the Philippines. They report the news right and where it happens. It adheres to the standards and ethics of journalism. It imposes strict rules against attacking someone. Strictly adhering to publish good news only.

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