Not Just Oil And Gas! Which Other Commodities Will Be Impacted By Russia Ukraine Crisis?
Russia Ukraine News: The impact of the conflict will not be limited to oil and natural gas. According to Bloomberg, 130 countries in the world import one or more commodities from Russia, Ukraine or Belarus.
New Delhi: Russian invasion of Ukraine has sent ripples across the globe. Each country is bracing itself for the impact. Oil prices have already shot up, Natural Gas prices have been rising swiftly. But is the fallout only limited to oil and natural gas? A latest Bloomberg report says otherwise.
According to the report, over 130 countries across the globe have at least one commodity imported from Russia, Ukraine or Belarus. Belarus had been a major base for the Russian forces during the buildup to the attack.
You may like to read
The sanctions on Russia by major economies have thus far eluded oil and natural gas. However, Russia is expected to be removed from the SWIFT mechanism for international payments.
Which Other Commodities Will Be Impacted By Russia Ukraine Conflict?
Russia is one of the biggest suppliers of Palladium, a rare earth metal that is used to manufacture Semiconductors. Russia meets 45 per cent of the global palladium supply. The crisis is expected to put additional pressure on the already struggling industry. Semiconductors are necessary for manufacturing electronic devices including mobile phones and laptops.
Russia is the largest supplier of wheat to the world. Ukraine is the fourth largest. According to Bloomberg, Egypt and Turkey import over 50 per cent of their wheat from Russia and Ukraine. It may see some strains if harsh sanctions are imposed on Russia.
Russia and Belarus are major exporters of fertilisers to the world. According to Bloomberg, China and Brazil imported 30 per cent of their fertiliser from these two countries in 2019. USA and India too are major buyers of the commodity from Russia.
- Maize/ Corn
China is one of the biggest buyers of maize from Ukraine. In 2019, 63 per cent of China’s maize demand was met alone by Ukraine. Along with this, the Netherlands also imports more than 50 per cent of its requirement from Ukraine.
- Sunflower Seed Oil, Cotton Seed Oil
India and China are the biggest markets of edible oil in the world. 79 per cent of India’s requirement and 63 per cent of China’s requirement was met by Ukraine alone in 2019. With supply chain bottlenecks likely to emerge from the conflict, the already high prices of oils in India may rise further.
According to the report, the largest buyer of Russian gold is the United Kingdom. In 2020, it imported gold worth $17 billion from Russia.
- Nickel, Aluminum and Pig Iron
90 per cent of Finland’s nickel requirement is met by Russia alone. On the other hand, it meets Turkey’s 50 per cent aluminium requirements.
For the US, Russia is a major supplier of pig iron. Almost 19 per cent of the pig iron requirement of the US was met by Russia and Ukraine last year. It is a major component in manufacturing steel.
For breaking news and live news updates, like us on Facebook or follow us on Twitter and Instagram. Read more on Latest Business News on India.com.