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.
SiliconExpert Is Here to Navigate You Through Impending Risk To Your Supply Chain
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, as well as identifying part numbers that have the potential of being affected.
Sign up for a 7 Day Free Trial today and keep your business operations on track!
Photo Credit: A convoy of Russian armored vehicles moves along a highway in Crimea, Tuesday, Jan. 18, 2022. Russia has concentrated an estimated 100,000 troops with tanks and other heavy weapons near Ukraine in what the West fears could be a prelude to an invasion. (AP Photo)