Russia-Ukraine Conflict Further Complicates Global Supply Chain

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By Susan Beardslee | 2Q 2022 | IN-6513

 

Primary Exports Shuttered

NEWS


Russian businesses are under sanctions and the conflict has cut off Ukrainian exports, resulting in global shortages and surging prices. Russia was the third-largest manufacturer of light vehicles in the European market, after Germany and Spain (LMC), which along with crude petroleum and natural gas has had a significant impact on Western countries. Ukraine has traditionally supported multiple wiring harness suppliers, especially needed for Battery Electric Vehicles (BEVs). Raw materials include iron, steel, mining, and chemical products.  

Economies Struggle, Costs Soar and Sourcing Evolves

IMPACT


Russia’s economy is projected to decline by 10% this year with future impact expected. Ukraine is projected to fall by twice that based on current intelligence, impacted by massive damage to infrastructure. This reverberates into many other countries from the supply of oil to the flow of trade, which remits to central Asian countries and links to financial systems. There are shifts in the supply of oil to Western countries and the rela…

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