Italy has already seen factory closures due to reliance on Russian metals.
Mr Pugh suggested this could spread to the UK, warning: “The risk is we start to see some manufacturers which rely on those kinds of countries start to shut down because they can’t get the raw materials.”
According to him, cars would be the “number one” place this would be most obvious.
Car manufacturing has already been plummeting, according to trade body the Society of Motor Manufacturers and Traders (SMMT).
According to the SMMT’s figures, new vehicle registrations fell 14.3 percent year on year in March, with manufacturing output as of February at a six-year low.
With further impacts on microchips to come, Mr Pugh warned: “The automotive industry is in for another painful period unfortunately.”
Beyond vehicles, the electronics industry more broadly is vulnerable to shortages of microchips, with Mr Pugh suggesting audio-visual equipment such as computers could see a hit to manufacturing.
Another big area to feel an impact is likely to be food given the dominant role of Russia and Ukraine in wheat exports.