Ukraine Pauses All Exports of Gas & Coal
June 23, 2022 – Ukraine has announced a suspension of all exports of natural gas, coal and oil as a result of Russia’s invasion of Ukraine.
In a statement released by Ukrainian President Vladimir Zelensky, the suspension of these commodities come in anticipation of a difficult winter during wartime, and that their needs would be required to provide for domestic needs.
Impact of Ukraine Energy Production on Global Economy
With 38 billion tons of coal reserves, over 1 trillion cubic meters of natural gas, and 395 million barrels of oil, Ukraine has taken large steps to being self-sufficient in energy use. However, Ukraine currently only produces 65% of the supply required to meet domestic energy demands.
Ukraine’s energy is critical to keeping up their massive share of global exports of food, iron ore, and neon gas used in electronics chip manufacturing. They are the world’s top exporters of sunflower oil, the fourth-largest exporter of corn, and the fifth-largest exporter of wheat.
Additionally, Ukraine is known for producing nearly 54% of the world’s supply of high-grade neon gas used in semiconductor production. The US sources 90% of their neon gas supply from Ukraine.
If Ukraine is unable to meet their domestic energy demands, the world’s supply of food and electronics goods will be critically impacted. We are already seeing large price fluctuations: a 38.7% increase in the price of sunflower oil and a 10-fold increase in the cost of pure high-grade neon gas.
MITIGATE SUPPLY CHAIN RISK BY MONITORING CRITICAL SITUATIONS
To measure the impact of Ukraine’s energy production and export of valuable resources, SiliconExpert is tracking manufacturers and fab sites that source from Ukraine. Once we find trends and fluctuations in price, inventory levels, and lead time, alerts are sent out to customers with the affected parts in their BOM.
SiliconExpert also monitors sites for fabrication, testing, and assembly in Russia or Ukraine, and the countries connected to them, in order to build a complete picture of how components and electronics products may be affected.
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