Ukraine Invasion Impact Summary
February 24, 2022 – This morning Russian military forces began their invasion of Ukraine with a combined land, air, and sea assault. This is serving up to be one of the largest invasions since WWII.
As a response to Russia’s invasion of Ukraine, global stock markets have seen a slump. The price of oil has climbed to over $100/barrel, an increase not seen since 2014. The United States and several of its Western Allies have imposed sanctions on Russia and some of its top officials in response to the invasion. These sanctions will have a devastating effect on the Russian economy and may lead to additional global repercussions in addition to global supply chain impacts.
Potential Supply Chain Impacts:
- Oil – Russia supplies over 30% of European Oil & Natural Gas
- Food – Russia & Ukraine produce a combined 25% of the world’s wheat, as well as a large percentage of barley, and corn.
- Semiconductors (gases) – Ukraine is a major supplier of raw gas materials including neon, argon, krypton, and xenon. With nearly 70% of the global market share of neon coming from Ukraine, semiconductor and chip manufacturing will likely suffer.
- Semiconductors (palladium) – Russia exports 35% of the Semiconductor industry’s palladium, a key material in the production of chips.
To learn about some of the other potential supply chain impacts, check out our previous blog on the Ukraine/Russia conflict.
Map of Russian Invasion into Ukraine. Photo Credit: New York Times
Adapt And Overcome Supply Chain Disruptions
SiliconExpert’s Supply Chain Module is designed to help you closely monitor situations that have the potential to impact the global economy and provides you alternatives to keep your supply chain intact. SiliconExpert is maintaining a close eye on manufacturers and businesses with facilities located in Russia and Ukraine to help you understand how your business might be impacted.
To learn more about the SiliconExpert Supply Chain Module and how it can help you be better prepare for Global Supply Chain Events, click the link below to learn more.