Ukraine-Russia Conflict Impact Summary

February 7, 2022 – Tensions between Russia and the North Atlantic Treaty Organization (NATO) continue to rise as a result of the imminent threat of invasion by Russian troops on the border of Ukraine ensue. 

In December 2021, Russian Foreign Minister Sergey Lavrov issued a highly contentious set of demands including a ban on the admittance of Ukraine into NATO and a limit on the deployment of NATO forces on it’s eastern border. The United States and NATO issued a blanket rejection to these demands and warned Russia that any attempt to invade Ukraine will be met with retaliation, including but not limited to, economic sanctions and military and financial support provided to Ukraine.  

This conflict has the potential of lasting repercussions on the global supply chain. To help you stay informed, SiliconExpert has compiled a list of potential impacts. 

• Oil & Gas 

• • Russia supplies upwards of 30% of Europe’s oil and 35% of its natural gas. In the event of a war, these supplies would be shut off and prices could rise 50% – 150%. 

• Metal & Manufacturing 

• • Russia’s share of the global metal market is as follows: Nickel (49%), Palladium (42%), Aluminum (26%), Platinum (13%), Steel (7%), and Copper (4%).  
  • A sharp drop in the global supply of these metals would have a substantial impact on the manufacturing of kitchenware, mobile phones, medical equipment, construction materials, catalytic converters, electrodes, vehicles, machinery, and much more. 

• Business Operations Suspended 

• • European Business Association reported that 17% of Ukrainian businesses are considering relocating within Ukraine, away from the conflict, while another 10% are considering leaving the country.