1

▪ Economic crisis
▪ Crisis factors, indicators &
effects
− Use economic crisis-related lexical
items
− Recognize & describe economic
situations
Unit objectives: − Speak about crises using cause & effect
− Foster learners” understanding of: − Describe crisis, etc..
“Lack of financial planning is the root of all empty wallets” ― Mac Duke The Strategist
Task One: Complete the semantic field with words related to crisis:

Task Two: Crisis indicators – What indicates that a business/ country is undergoing crisis:
a. ………………………………………………
b. ………………………………………………
c. ………………………………………………
d. ………………………………………………
e. ………………………………………………
f. ………………………………………………

I – Section one: Listening – Listen carefully and do the related tasks.

The Collapse - The Banking Crisis: Causes and Effects
link: https://www.youtube.com/watch?v=sIIukNM3BfA&t=309s&abchannel=OpenLearnfromTheOpenUniversity
Discussion: Discuss the following ideas:
• The history of financial institutions
• The banking crisis
• The potential causes and effects of this crisis

Task One: Listen carefully and decide if these statements are true (T) or false (F):
1. By September 2005, UK banks have changed beyond all recognition.
2. Finance turned out quite simple that many laymen could understand new banking procedures.
3. Banks were gambling and were ignorant of the risks they were undertaking
4. The big failure of contemporary economics is the inability to distinguish measurable from uncertain
and unmeasurable risks
5. Banks were not trusting nor lending to each other.
6. Borrowing and lending money are the most basic principle of banking.
7. Investment banks accept deposits from the general public
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8. In Britain, the banking sector is less regulated than it is in America

9. The Glass-Stegall Act separates the commercial from investment banks
10. In 1980, Ronald Reagan alleviated governmental control over the financial market in America
11. Deregulation abolished former separation among commercial and investment banks as well as
building societies.
12. Deregulation put an end to the Glass-Stegall banking Act.
13. Deregulation ended financial institutions’ specialization and opened the floor for more competition
amongst them.

Task Two: Listen carefully and fill the gaps with the right words from the listening passage:
1. Banks were once seen as the …………………. …………………. of modern British society: safe, solid and
………………….
2. Banks provided the …………………. and …………………. needed to ensure that businesses could
…………………. And the economy could ………………….
3. The …………………. of products being sold …………………. We started with high quality ………………….,
packaged them into high quality …………………. In the end, what was packaged was …………………. but
telling everybody that it was ………………….
4. In the first, it led to a …………………. …………………. and banks were being pushed to the very
…………………. of ………………….
5. The government had to …………………. with fresh …………………. for the banks and ………………….
6. Within a year, a …………………. …………………. Year crashed down on the British economy. It had become
hard to get a …………………., deposit required when buying a house …………………. and credit got
………………….
7. If lending and borrowing are done through the market, there are problems of …………………. As lenders
know little about the …………………. And problems of …………………. As lenders may base their
…………………. …………………. on willingness to pay a high interest rate rather than on actual ability to
pay. Banks, therefore, sold both of these problems.
8. Banks provide long-term loans whilst giving savers …………………. …………………., they suffer an
inherent …………………. or …………………. risk
9. The bank of England …………………. and …………………. the British financial system
10. Thanks to deregulation, banks embarked on …………………. adopting shareholder-value ethos of
………………….

Task Three: Listen carefully the tick the right answer:

1. …………………. complicated the banking industry:
A. The regulatory framework
B. The management styles and skills
C. The banking business model
D. All of these
2. These events have changed the ways that:
A. Banks operate
B. The public’s perception of banks
C. The entire landscape of personal finance
D. All of these
3. Investment banks do all of the following EXCEPT:
A. Provide long-term capitals for businesses
B. Invest and trade in the global financial markets
C. Provide instant withdrawals
D. Are engaged in corporate advice & securities’ trading
4. ‘Contemporary’ means almost the same as:
A. Formerly
B. Contemporaneous
C. Erstwhile
D. Previous
5. ‘Complicated’ means almost the same as all of these words EXCEPT:
A. Meek
B. Convoluted
C. Sophisticated
D. Complex
6. ‘Flourish’ means almost the same as:
A. Embellish
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B. Thrive
C. Blossom
D. Float
7. ‘Distinguish’ means almost the same as:
A. Separate
B. Classify
C. Differentiate
D. Perceive
8. ‘Plummet’ means almost the same as:
A. Succeed
B. Rise
C. Plunge
D. Fall
9. Credit got tighter, tighter means:
A. Accessible
B. Inaccessible
C. Difficult to obtain
D. Unobtainable
10. ‘Incentive’ means all the following EXCEPT:
A. Stimulus
B. Impetus
C. Hindrance
D. Enticement
11. ‘Alleviate’ means almost the same as:
A. Intensify
B. Heighten
C. Assuage
D. Magnify

Follow-up: Work in pairs, discuss and answer these questions

1. What caused the banking crisis in Britain?
2. What were the consequences of the banking crisis in Britain?
3. What solutions were suggested and implemented to overcome the crisis and were they efficient?
4. What other solutions do you suggest?
• Fill in the missing categories in the following table:
Verb Adjective Noun
…….. …….. Recognition
Depend …….. ……..
…….. Sophisticated ……..
…….. Simple ……..
…….. Safe ……..
…….. …….. Distinction
…….. …….. Competition
Profit …….. ……..
Trust …….. ……..
Section Two: Reading – Economic Collapse
Task One: Check your understanding of these key words:
1. ……… Hyperinflation: 4. ……… Bankruptcy: 7. ……… Jurisdiction:
2. ……… Bear market: 5. ……… Stagflation: 8. ……… Solvency:
3. ……… Sovereign: 6. ……… Subsidy: 9. ……… Debt:
a. Financial assistance aid furnished by a government to a private industrial undertaking, a
charity organization, or the like.
b. Sth owed- being under the obligation to repay someone in return for sth received.
c. The state of having enough cash and not being in debt
d. Persistent inflation combined with stagnant consumer demand, relatively high
unemployment & unsuccessful businesses.
e. Having supreme rank, power, or authority and greatest in degree.
f. The power or right to exercise authority & apply the law
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g. Extremely rapid increase in the price of goods & services

h. In which securities & commodities are persistently declining in value
i. Inability to repay debt
Now, read & find out economic crisis’s causes & effects:
What is Economic Collapse?
Economic collapse refers to a period of national or regional economic breakdown where the economy is in
distress for a long period, which can range from a few years to several decades. During periods of economic
distress, a country is characterized by social chaos, social unrest, bankruptcies, reduced trade volumes,
currency volatility, and breakdown of law and order.
Due to the magnitude of the economic distress, government interventions for economic recovery can be
slow to bring the economy back on track, and the delay causes even greater disorganization of the economy.
Several factors may trigger economic collapse. Among these hyperinflation and stagflation, etc..
Hyperinflation occurs when the government allows inflationary pressure to build up in the economy by
printing excessive money, which leads to a gradual rise in the prices of commodities and services. Governments
resort to creating excess money and credit with the goal of managing the economic slowdown and financing its
activities. Hyperinflation occurs when the government loses control of the price increases and raises the
interest rates as a way of managing the accelerating inflation.
Stagflation refers to a situation in which the economy is growing at a slow rate while simultaneously
experiencing high rates of inflation. Such an economic situation causes a dilemma among policymakers since
the measures implemented to reduce the rise in inflation may increase unemployment levels to abnormally
high levels. Stagflation and its effects on the economy may last for several years or decades.

For example, the United States experienced

stagflation from the 1960s to the 1970s. During said
period, economic growth was stagnant, and the
inflation peaked at 13% per annum while the inflation
rate in the United Kingdom was at 20% per annum.
Once stagflation occurs, it is usually difficult to
manage, and governments must incur huge costs to
bring balance to the economy.
The economic collapse brings about a stock
market crash. The latter occurs when there is a loss of
investor confidence in the market, and there is a
dramatic decline in stock prices across different
stocks trading in the stock market. When a stock
market crash occurs, it creates a bear market, when
prices drop 20% or more from their highs to hit new
lows, and it drains capital out of businesses.
Crashes occur when there is a prolonged period of rising stock prices, price earning ratios exceed long-
term averages, and there is excessive use of margin debt by market participants.
Several scenarios characterize an economic collapse. During such periods, interest rates peak to
abnormally high levels, and it limits the amount of money that is available for investors to invest. High interest
rates hinder economic growth since investors, corporations, and government find it costly to service existing
debt obligations and take out new loans due to the high cost of capital.
When a major company declares its inability to finance its debt obligations and resorts to disposing of its
assets to pay creditors, investors lose confidence in the company and will be hesitant to trade their money
during periods of financial distress.
Governments also take up sovereign debts to
finance capital-intensive infrastructural projects.
However, as the government takes too many debts
and is unable to pay principal and interest obligations
when they fall due, this increases the risk of defaulting
on its existing debt obligations and becoming
bankrupt.
A sovereign debt crisis occurs during periods
of slow economic growth, wars, political instability,
drought, and when investors lose confidence in the
government. Due to the large size of sovereign debts,
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a default by the government is likely to affect the

global economy and cause spill-over effects on other
jurisdictions.
Thirdly, due to a loss of investor confidence, the depreciation of the local currency is very likely. Local
currency crisis occurs when foreign investors who have invested in a country and advanced credit to the
government lose confidence in the government’s ability to meet debt obligations or generate the agreed upon
returns.
In such situations, the foreign investors withdraw their investments in the country. The move increases the
selling of the borrowing country’s currency in the international market, resulting in currency devaluation. In
return, the currency devaluation increases the country’s international debts, resulting in the loss of the
country’s purchasing power.
Ultimately, a global currency crisis, which involves the loss of value of a major currency, such as the US
Dollar that is used in cross-border trade transactions between individuals, corporations, and governments may
be looming in the horizon. This means that if the dollar depreciates in value, it may trigger a global economic
crisis. The corporate finance institute at https://corporatefinanceinstitute.com/resources/knowledge/economics/economic-collapse/ on June 13th, 2019
1. Fill in the table with information from the text in Note Form:
Economic Crisis
Causes Effects
− −
− −
− −
− −
2. Vocabulary:
1. Find in text words which mean almost the same as:
a. A situation in which sth happens later than it f. Sudden decline or failure: …………………………
should: …………………………………… g. Make sth slow or difficult: …………………………
b. Be about to happen: ……………………………… h. A failure to make a payment: ……………………
c. Accumulate & heap up: …………………………… i. Having independent authority & the right to
d. To have recourse to sth: ………………………… govern itself: ……………………………………
e. Not active, not changing or progressing: j. Flow out of or spread beyond a container or
……………………………………… area: …………………………………
2. Word Partnership: Reread the text and find out word partnerships that satisfy these
criteria:
Adjective + Noun Noun + Noun Adj + Noun + Noun
− Dramatic decline − Stock market − Local currency crisis
− − −
− − −
− − −
− − −
− − −
Follow-up: Expressing cause and effect:
‘Cause’, in English is both noun and verb that refers to a person or thing that makes something happen:
• The causes of the global eruption and dissemination of COVID19 virus are not yet precisely identified.
• The sudden outbreak of COVID19 virus caused distressing economic and psychological disorders.
‘Effect’, in English, is noun ; affect is verb :
• The effects of COVID19 pandemic are devastating on a global scale.
• COVID19 pandemic affected enourmously all sorts of businesses.
▪ As a noun, ‘effect’ conveys a change that is the result of an action or cause.
▪ As a verb, ‘affect’ means to produce an effect; to cause a change in something.
In English, several expressions are used to express ‘cause and effect’ relationships.
Task One: Match the following fragments halves to form meaningful sentences, then:
▪ Find out these expressions, and how they are used,
▪ Decide about the type of sentences and clauses they join.
1. Households’ buying capacity decreased remarkably
2. Raw materials rarefied in the global market
3. COVID19-related effects were relatively minimized
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4. As a result of citizens’ solidarious behaviour,

5. Due to the sudden eruption of Covid19 pandemic,
6. Several factories abandoned manufacturing
A. Many businesses had to interrupt production.
B. Thanks to governments’ subsidies.
C. In view of the unavailability of raw materials.
D. The pandemic’s pernicious effects were lessened
E. Owing to the abrupt shutdown.
F. Because of having lost their jobs.

▪ Now, find out:

▪ Cause & effect expressions:
▪ How are these used?
Vocabulary: Practice WORD FORMATION by putting the words in (…) in the right form:
Remember:
• An adjective is a word that always describes nouns.
• A noun is a word used to identify any of a class of people, places, or things (common noun), or to
name a particular one of these (proper noun).
• An adverb is a word that describes, following their type, all of verbs, adjectives and other adverbs.
1. When you start work in this restaurant, good hygiene is of the highest …………………… (important).
2. That was one of the most uncomfortable ……………………. (fly) I have ever been on. The turbulence was
awful.
3. There are ……………………. (vary) ways you can reach the conference hall, but the tram service in this city is
excellent and is ……………………. (probability) your best ……………………. (opt).
4. You have to go in there and ……………………. (energy) them! Without your ……………………. (encourage) and
……………………. (enthusiastic), I don't know what we would do.
5. The leader of the trade union tried ……………………. (success) for re-election before finally retiring after 27
years.
6. Sales of Samsung mobile phones have now ……………………. (take) those of Apple and Nokia.
7. The demand for clean drinking water in Africa far ……………………. (strip) supply.
8. What would have been an interesting ……………………. (politics) debate was ruined by the …………………….
(aggression), ……………………. (boss) ……………………. (interview) and finally, one of the candidates walked
out.
9. Ladies and gentlemen, the creation of this new department will increase ……………………. (produce) and
help the company to become ……………………. (profit) again.
10. The competitors’ CEO has so much ……………………. (imagine) and ……………………. (create), which never
fails to ……………………. (amazement) me.
11. The competitors’ CEO is so ……………………. (imagine) and ……………………. (create), which is quite
……………………. (amazement).
12. The boss is very disappointed by your ……………………. (care) and ……………………. (response)
……………………. (behave), which show your ……………………. (arrogance) attitude and ……………………. (able)
to comply with the norms.
13. He wrote a ……………………. (greatness) report on the future of the ship-building industry, but the boss does
not agree with his ……………………. (conclusion). He found his ……………………. (predict) quite
……………………. (argue) and ……………………. (convince).
14. The manager is……………………. (availability) at the moment. He seems to be in a meeting.
15. The Age Of Enlightenment was one of great inventions and ………………………. (revolution) ……………………….
(discover).
16. I agree with the sentiments so ………………………. (eloquence) expressed in David's ……………………….
(persuade) and ………………………. (wonder) speech.
17. In the purchase ………………………. (negotiate), Honda ………………………. (manoeuvre) their
………………………. (rivalry) for the driving school contract by offering free ………………………. (maintain) for
one year.
18. Our competitor were quite ………………………. (consider); they should have ………………………. (consider) our
offer soundly.
19. The company manager will have to make a ………………………. (toughness) ………………………. (decision) next
week concerning the ………………………. (dismiss) of some ………………………. (trouble) employees.
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20. Their after- ………………………. (sell)’s service receives a lot of ………………………. (complain) about their
products.
Section Three - Communication:
A. Brainstorming:
▪ What solutions do you suggest to overcome or avoid economic crisis?
Consider these exponents when phrasing your responses:
− ……………………………………
Advising Suggesting Expressing opinion
− ……………………………………
… should… I suggest/ recommend I think ….
− ……………………………………
… had better … Why don’t we / …. ? I believe ….
− ……………………………………
… ought to … What about …. In my opinion, …
− ……………………………………
are advised to … Let us (not) … As far as … is/are
− ……………………………………
concerned, …
− …………………………………… It is advisable to … What if ….? I consider ….

B. What options do these sayings suggest?

▪ “When it comes to crisis communications, if you always focus on building a relationship with
your customers, fans and followers, you will always find yourself communicating in the right
direction.” Melissa Agnes
▪ “The secret of crisis management is not good vs. bad; it's preventing the bad from getting
worse.” Andy Gilman
▪ ‘‘He who does not economize will have to agonize.’’ Confucius
Businesses and crisis: Real life stories: Crisis at Domino’s Pizza – the US.
Discussion:
1. Do you know any business(es) that went/have gone or are going through crisis?
2. How did the crisis happen?
3. How did the public know about the crisis?
4. How did the business communicate through the crisis?
5. How did the business overcome the hardship?
Listening: Link https://www.youtube.com/watch?v=OhBmWxQpedI&ab_channel=Ramox3
Task One: Watch this video about a crisis at Domino’s Pizza and find out:
1. What caused such crisis?
2. How did the crisis erupt?
3. If you were the Domino’s Pizza owner, how would you handle this crisis?
Task Two: Watch Domino’s Pizza owner’s reaction and figure out:
Link: https://www.youtube.com/watch?v=dem6eA7-A2I&ab_channel=swifttallon
1. What do you think about his reaction?
2. Do you agree with him?
3. How best, do you think, can such crisis be avoided?
4. How would you advise business owners?
Section Four: Crisis Management
Discussion:
a. In pairs, discuss how can/should crisis be managed?
b. Are you aware of any crisis management practices or strategies?
Listening One: Video link: https://educationleaves.com/crisis-management/
Task1: Listen carefully and decide if these statements are true or false, justify your answer:
1. The speaker brings up six causes that trigger organizational crises.
2. He suggests five crisis management steps.
3. Small businesses usually have a crisis plan in place.
4. Big businesses often anticipate crisis.
5. Smaller companies foresee crises beforehand.
6. Ignoring futile issues helps organizations manage crisis efficiently.
Task2: Listen carefully and answer these questions:
1. How does the speaker account for crisis?
2. According to the speaker, what factors cause crises within businesses?
3. How does the speaker define crisis management?
4. Why is crisis management important?
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5. What recommendations does the speaker advise business owners?

Listening Two:
Task1: Listen carefully and fill in the table with information from the listening passage:
Crises within organizations
Types of crises Its related causes
1. …………………………….. issues: Technological, ………………………, or any ……………………
……………………, such as …………………… problem, software
……………………, ………..……… in the system, ……………… ………………
problems, etc..
2. Employee …………………. Employees do not ……………… with one another and ………………
amongst ……………………..
3. ……………………. Terrorism, ………………, crimes, and ……………… at the workplace.
4. ……………… ……………… issues ………………ing insignificant issues can lead to major crises in the
future.
5. ……………… ……………….. Accepting ………………, ………………, extortion, data ………………,
information ………………, etc..
6. ……………… problems Failure in ……………… ………………, ………………, bankruptcy.
7. ……………… factors causes ………………, ………………, ………………, volcanos, ………………,
earthquakes, etc..
Task2: Listen carefully and fill in the gaps in these sentences with information from the
listening passage:
1. Crisis management is the ……………………. of ……………………. ……………………. at the corporate level and
……………………. how to ……………………. ……………………. them effectively to ……………………. any
……………………. to an organization.
2. Before a crisis ……………………., business owners should ……………………. ……………………. how a disaster can
……………………. ……………………., consumers, ……………………., the public, and their organizations’
…………………….
3. ……………………. ……………………. Is the only key to the ……………………. of any business. By having a crisis
……………………. ……………………. In the workplace, a company and its ……………………. can prepare for any
……………………. and ……………………. changes.
4. A crisis management plan benefits organizations by shaping their ……………………. plan, establishing
……………………. determining who should be ……………………., when and ……………………. and which
……………………. can wait and which might require ……………………. …………………….-……………………. being
called …………………….
5. The crisis management plan also decides ……………………. will manage or call the ……………………. during the
crisis, ……………………. will be the organization’s ……………………. and which ……………………. will keep
employees ……… ……………………. through the crisis.
6. To …………………….. any threatening crisis, a proper …………………….. and plan must be …………………….. for
…………………….. crisis management.
7. A crisis management plan is a …………………….. …………………….. of the process to follow for an organization
to …………………….. the crisis ……………………..
8. Crisis management planning focuses on …………………….. …………………….. that help the organization to
…………………….. potential risks and how to …………………….. to crises should they ………………………
9. To start the …………………….. process, have a …………………….. session to …………………….. various risks the
company might face. Each risk can cause …………………….. results, so it is necessary to …………………….. them
………………………
10. Once you have …………………….. the high-probability risks that could …………………….. your ……………………..,
figure out the business …………………….. of theses risks with the help of the crisis ……………………..
……………………..
11. Potential business impacts may include customer …………………….., ruined ……………………..,
…………………….. sales, lost income or administrative ……………………..
12. A crisis management plan should consist of …………………….. …………………….., such as ……………………..
…………………….. and …………………….. …………………….. you will also need to …………………….. with
…………………….. …………………….. so that everyone knows …………………….. to do and ……………………..
Task3: List the steps of crisis management planning the speaker brought up:
1. ……………………..…………………….. 2. ……………………..……………………..
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3. ……………………..…………………….. 5. ……………………..……………………..
4. ……………………..…………………….. 6. ……………………..……………………..
Follow-up
Task4: Select & cross the letter that corresponds to the right answer:
1. The speaker mentions all the following ideas, EXCEPT:
A. Crisis management causes C. Crisis management steps
B. Crisis management obstacles D. Crisis management benefits.
2. The word ‘tackle’ means almost the same as:
A. Deal with C. Avoid
B. Implement D. Escape
3. The word ‘counter’ means almost the same as:
A. Impede C. Against
B. Contrast D. Contrary
4. The word ‘figure out’ means almost the same as:
A. Judge C. Resolve
B. Interpret D. Scrutinize
5. The word ‘fine’ means almost the same as:
A. Sanction C. Punishment
B. Penalty D. Reward
6. The word ‘step’ means almost the same as:
A. Level C. Leap
B. Stride D. Breakthrough
7. The word ‘adverse’ means almost the same as:
A. Reluctant C. Opposed
B. Inimical D. Unwilling
8. The word ‘deliberate’ means almost the same as:
A. Planned C. Purposeful
B. Prudent D. Careful
9. The word ‘extortion’ means almost the same as:
A. Abuse C. Coercion
B. Theft D. Fraud
10. The word ‘attrition’ means almost the same as:
A. Depreciation C. Attenuation
B. Appreciation D. Disintegration
Task5: discuss the ideas inherent in these sayings with your friend and share your thoughts with
the whole class:
a. “The crisis you have to worry about most is the one you don’t see coming”, Mike Mansfield, Former
Senate Majority
b. “A crisis is an opportunity riding a dangerous wind.” Chinese proverb.
c. Look at the following image, what do you think about the statement it includes?
d. How can crisis entail opportunities?
Section Five: Writing: Describing Crisis Trends:
Pre-questions:
1. How did the Covid-19 pandemic affect both commodities’ prices and customers’ demand?
2. How has the Russian assault on Ukraine influenced both commodities’ prices and customers’ demand?
3. What is the overall trend of the prices of commodities and currencies during crisis?
Russia's invasion of Ukraine rocked commodity markets
The war in Ukraine has wreaked havoc on the global economy as the world reels from high energy and
metal prices. As the war rages, DW looks at the fallout on commodity markets since the February 24 invasion.
Aluminum prices soared after Australia banned exports to Russia of key raw materials used to make the
metal. Just as the first Russian tanks and military vehicles rolled into the Ukrainian territory on February 24,
commodity prices surged with oil breaching $100 (€91) a barrel, aluminum climbing to a record high and wheat
prices soaring to a nine-year high.
The surge reflected traders' worries that the war involving Russia — a key supplier of oil, natural gas, coal,
aluminum and wheat — and Ukraine, also a key exporter of wheat and oilseeds, could stoke inflation, further
disrupt supply chains and derail the global economic recovery.
A month into the conflict, most of those fears are coming true. Inflation has shot up mainly due to higher
energy and food prices, a shortage of wheat is deepening the food crisis in countries like Egypt, and economic
growth is stalling, prompting economists to cut global growth forecasts.
 10

"Over time, global commodity trade flows will need to adapt to some or all of Russian/Ukrainian supply
being unavailable, whether due to infrastructure damage, sanctions or ethical concerns," major commodities
trader Glencore said in its annual report last week.
Oil and gas have arguably been the most followed commodities over the past month as the European Union
struggles to impose an oil embargo on Russia to turn off Moscow's biggest source of revenue. While the US has
imposed a ban on Russian oil, the EU, heavily reliant on Russia for its energy needs, is still debating joining the
embargo.
Oil and gas prices have surged over the past months amid supply concerns precipitated by "self-sanctioning"
companies refusing to buy or ship Russian oil to avoid falling afoul of sanctions, for moral reasons, or to prevent
any reputational damage.
Natural gas prices in Europe climbed to an all-time high of €345 per megawatt-hour (MWh) earlier this
month. They have been relatively stable in recent weeks falling to around €100MWh. However, Russian
President Vladimir Putin's decision on Wednesday that "unfriendly" countries purchasing Russian gas would
have to pay in rubles instead of euros or dollars added an element of uncertainty in the European gas market.
"Gas supply agreements are generally considered sacrosanct: and in an extreme scenario, insisting on
ruble payments may give buyers cause to re-open other aspects of their contracts -– such as the duration -– and
simply speed up their exit from Russian gas altogether," Romano said.
Global benchmark Brent crude, which stood at around $90 in February, jumped to a multiyear high of $139
a barrel on March 7. It is now trading at $118. Gasoline and diesel prices have also gone up significantly.
"The oil bulls have again gained an upper leg in the market in anticipation of US President Joe Biden's visit
to Brussels and a potential announcement of the EU joining the embargo on Russian oil imports," Rystad
Energy's Louise Dickson said in a note, referring to a rise in oil prices this week. "Russia has threatened to turn
off gas supplies to Europe in the case of an EU oil embargo, which has added to the short-term market volatility."
Aluminum prices have been skyrocketing over the past month, surpassing the peak they hit in 2008 during
the global financial crisis. Traders are fretting over supplies from Russia, which produces around 6% of the
world's aluminum supply.
The war in Ukraine has hit supplies of wheat, corn and sunflower oil in several parts of the world, prompting
UN Secretary-General Antonio Guterres to warn of a "hurricane of hunger and a meltdown of the global food
system." Russia and Ukraine together account for about 30% of global wheat exports. The two countries together
account for 80% of the world's sunflower oil exports.
Russian forces have been blocking ships carrying wheat from leaving the Black Sea, a key trade route for
grains. The war has also jeopardized Ukraine's wheat harvests, further threatening food security.
Wheat prices are the highest they have been since 2008 and are expected to continue to rise. Sunflower oil
prices have also gone up across the world. Fears of supply shortages are causing people in several European
countries to stockpile cooking oil and flour. The crisis is being compounded by a rise in fertilizer prices which is
causing farmers globally to reduce the amount of land they're planting. Russia is a major exporter of soil
nutrients like potash, ammonia and urea.
The EU is set to distribute €500 million ($550 million) to help farmers deal with higher fuel, feed and
fertilizer prices. It is also allowing them to grow crops on fallow land to help curb the rise in food prices and
prevent any potential shortages.
As commodity prices jumped following the Russian aggression, the price movement of one metal stood out.
On March 8, nickel prices went crazy; they more than doubled to over $100,000 a ton as a major Chinese
producer Tsingshan Holding was forced to buy large amounts to cover its short positions. The market squeeze,
which took place amid worries over supply delays emanating from the Ukrainian conflict, prompted London
Metal Exchange (LME) to halt trading.
LME nickel prices have since dropped to about $30,000 per ton but remain well above pre-invasion levels.
High nickel prices have added to the troubles of electric-car makers who have been struggling with rising
costs of raw materials such as lithium and cobalt over the past few months. High input costs have forced market
leader Tesla to raise prices across various models of its cars. More than a dozen of Chinese electric-vehicle
makers have also increased their sales prices in recent months.
https://www.dw.com/en/how-russias-invasion-of-ukraine-rocked-commodity-markets/a-61235041
Comprehension questions
Task one: Answer these questions with information from the text?
1. How do citizens react to crisis and shortage of supply?
2. How has Russia tried to offset Western sanctions?
Task two: find in the text words that mean almost the same as:
1. …………………………………………………..: unplanted & uncultivated
2. …………………………………………………..: instability & unpredictability.
3. …………………………………………………..: endanger & threaten
4. …………………………………………………..: strengthen & encourage
Task three: Explain these words as they are used in the text?
1. Wreak: …………………………………………………..
2. Havoc: …………………………………………………..
3. Sacrosanct: …………………………………………………..
4. Embargo: …………………………………………………..
 11

Follow-up:
A. What language items are used to describe the crisis?
B. Spot out instances of these exponents?
Task four: Underline expressions describing crisis in accordance with these options?
A. Fall a lot C. Be stable E. Rise a little
B. Rise a lot D. Fall a little F. Rise after previous fall or
stability.
1. Aluminum prices soared to a nine-year high after Australia banned exports to Russia.
2. Commodity prices surged with oil breaching $100 (€91) a barrel.
3. Aluminum prices shot up to a record high.
4. The Russian Rubble recovered after the stimulating Central Bank’s measures.
5. Economic growth is stalling at the moment.
6. Oil and gas prices have increased remarkably over the past months amid supply concerns.
7. Natural gas prices in Europe climbed to an all-time high of €345 per megawatt-hour (MWh) earlier this
month.
8. Gas prices have been relatively stable in recent weeks falling to around €100MWh.
9. Global benchmark Brent crude stood at around $90 in February.
10. Brent crude jumped to a multiyear high of $139 a barrel on March 7.
11. Brent crude is now trading at $118.
12. Gasoline and diesel prices have also gone up significantly.
13. The oil bulls have again gained an upper leg in the market in anticipation of US President Joe Biden's visit
to Brussels.
14. Aluminum prices have been skyrocketing over the past month, surpassing the peak they hit in 2008 during
the global financial crisis.
15. Nickel prices went crazy; they more than doubled to over $100,000 a ton as a major Chinese producer was
forced to buy large amounts to cover its short positions.
16. LME nickel prices have since dropped to about $30,000 per ton.
17. Households’ buying capacity plummeted significantly as a result of the increase of the living costs.
18. Trade in raw materials dried up and Black Sea froze remarkably.
19. Russia’s biggest metals & mining company, NMC Norilsk Nickel PJSC, slumped as much as 58% in London
and closed at 43% lower.
20. European natural gas thrived as much as 36% before paring gains.
21. Investments in Russia drifted noticeably towards other peaceable countries.
22. Due to higher prices, consumers’ demand dropped slightly.
23. Spending on non-durable goods whose lifetime exceeds 3 years, like food and kitchen equipment rose
sharply by 18%.
24. Households’ spending on luxury products from cars to kitchenware fell steadily but started to revive a little
thanks to the governments’ incentive measures and alleviation of travel restrictions and lockdowns.
25. Due to the quarantine and dismissals, meat consumption plunged quite imperceptibly.
26. Poultry consumption levelled off amidst the crisis due to meat’s ascending prices.
3. Now, sort out the verbs and phrases describing crisis and write them where they fit:
Verb Verb + Adverb Adjective + Noun Nouns

▪ Fall ▪ Fall remarkably ▪ Adverse fall ▪ Fall

3.1. There are several prepositions which are commonly used to describe graphs and charts. Using the
right prepositions is essential to make the account unequivocal when referring to line movement.
There are two patterns:
▪ Verb + preposition: from … to, by … to, to, by, at.
a. Income tax has gone up ……… 30% ……… 40%. (the total increase is 10%)
b. Income tax has gone up ……… 30% ……… 40%. (the total increase is 30%)
c. Inflation has risen ……… 5%. (inflation is now 5%)
d. Inflation has risen ……… 5%. (if it was 10% before, now it is 15%)
e. Inflation has increased ……… 5%. (movement)
f. Inflation now stands ……… 5%. (no movement)
 12

▪ Noun + preposition: in, of, at. Remember:

a. The increase ……… salaries is around 5%.
➢ Use by after a verb.
b. There was an increase ……… 5%. ➢ Use of after a noun and before the
c. The exchange rate reached a peak ……… USD 3.76 in April. amount.
➢ Use in after a noun and before a topic.
Task One: Now, fill in the gaps in the following sentences with the right preposition from the
box:

with at in by at
to between from to of
1. In may, the price of gold rose slightly ………… $1,500.
2. Holidays to foreign destinations remained constant ………… about 85,000 per month for the last two
months of the year.
3. Profits increased ………… 4 million dollars to 6 million dollars last year.
4. From 2001 to 2010, the price of electricity has increased ………… 125%.
5. Bike sales reached a peak ………… 20,000 in September.
6. There is a sharp increase in traffic levels from 8am to 9 a.m., ………… nearly 3000 cars traveling on the
road.
7. The last decade has seen a steep increase ………… the number of people diagnosed with diabetes.
8. At the start of the year, the turnover of the company stood ………… £1.3 million.
9. During the summer, student numbers at the school fluctuate ………… 150 and 170 per week.
10. Following this, the number then fell ………… a low of 20 per month.
3.2. Giving an accurate account:
▪ Some Nouns are qualified with adjectives (sharp, sudden) and some verbs
with adverbs (dramatically, significantly).
▪ Adjectives used to describe movement include: slow, slight, moderate, gradual, steady, quick,
rapid, significant, sharp, substantial, dramatic.
▪ Used to show a small change: slight, minor, insignificant, trivial, etc.
▪ Used to show a regular movement: gradual, steady, slow, , stable, etc.
▪ Used to show considerable, striking or unexpected change: significant, substantial,
dramatic (both positive and negative change), sharp, sudden, etc.
▪ Adverbs are formed by adding -ly to the adjective, and sometimes one or two other letters change
as well.
Degree of change:
▪ Dramatically, considerably, significantly, substantially, sharply, moderately, slightly
▪ Note that "dramatically" can refer to both good and bad changes.
Speed of change:
rapidly, quickly, suddenly, gradually, steadily, slowly
Giving approximation :
It is very common to use approximate figures. Approximately — close to but not exactly.
▪ A great deal more than, way over ▪ Far less than, nowhere near, nothing like as
▪ Somewhat more than, well over much as
▪ Just over, slightly more than ▪ Marginally, fractionally (imevähe,
▪ Around, about, roughly, somewhere in the marginaalselt, napilt)
region of, approximately ▪ Substantially
▪ Almost, nearly, not quite, just short of
3.3. Writing Task : Types of graphs:
• Bar graphs to show numbers that are independent of each other. Example data might include
things like the number of people who preferred each of Chinese takeaways, Indian takeaways and
fish and chips.
• Pie charts to show you how a whole is divided into different parts. You might, for example, want
to show how a budget had been spent on different items in a particular year.
• Line graphs show you how numbers have changed over time. They are used when you have data
that are connected, and to show trends, for example, average night time temperature in each
month of the year.
• Cartesian graphs have numbers on both axes, which therefore allow you to show how changes
in one thing affect another. These are widely used in mathematics, and particularly in Algebra.
https://www.skillsyouneed.com/num/graphs-charts.html
3.4. Now, Describe this graph more accurately?
 13

Consider these useful language expressions in the box and integrate them in your description:
A. To go down a little B. To go down a lot
Nouns Verbs Nouns Verbs
A decrease To decrease A plunge To plummet
A fall To fall A slump To plunge
A drop To drop A crash To slump
A decline To decline A tumble To crash
A downturn To go down To sink
A downward trend To slip To tumble – to slid

C. To describe the degree of change D. To describe the degree of change

Adjectives Adverbs
decrease Dramatically
fall Considerably
A drop To sharply
decline fall fall Slightly
downturn Substantially
downward trend Moderately

E. To describe the speed of change A. To describe the speed of change

Adjectives Adverbs
Sudden Abruptly
Abrupt Suddenly
An / A Rapid To fall Rapidly
Quick drop Steadily
Steady Gradually
Gradual Slowly, etc..

Task five: Now, describe the trend embodied in this graph?