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Russia’s offensive on Ukrainian soil further strains global supply chains, which are already stretched thin. It is true that Russia represents only a small proportion of the imports of the main manufacturing countries, such as Germany and the United States, but it is an essential supplier of raw materials and energy. for many critical supply chains… Now, its devastating invasion and sanctions by Western powers have triggered one of the biggest commodity crises the world has ever experienced.
“It surpasses even the changes in the commodity markets of the 1970s and affects all commodities, from grains to fertilizers, through crude oil and metals”, warns the popular financial blog of the United States ZeroHedge.
Based on data provided by Bloomberg, the site shows how the invasion of Ukraine and sanctions by Western powers on Russia are stifling the world’s supply of natural resources, driving up prices.
Russia is one of the main exporters of many raw materials.
The map reveals that Russia exports, for example, 78% of gas to Europe, 69% of platinum to the UK, 27% of palladium to the US, 24% of fertilizers to Brazil and 22% of wheat to Egypt. In addition, China receives Nickel (44%), Crude oil (35%) and Sunflower oil (24%).
In the image you can see very graphically how all these raw materials emanate from Russia to the world, so the invasion and sanctions are catastrophic for the supply chain.
The United States, the United Kingdom and Canada have banned Russian imports, causing major turmoil in energy markets. And these export bans on Russian crude and other commodities have already disrupted world trade and sparked fears of tightening supply “Anyone who has filled their vehicle with fossil fuel has noticed that prices at the pump fired since the invasion”, points out ZeroHedge and explains that this is because Russia is the second largest exporter of crude oil in the world, behind Saudi Arabia.
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China, Germany, Poland and the Netherlands are some of the main recipient regions of Russian crude therefore, the lack of oil will affect the refineries and their capacity to produce products derived from crude oil.
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Russia is also the second largest exporter of gasoline and diesel., just behind the United States, and its largest export market is Europe. And France, Germany, Turkey and the United Kingdom are the countries that consume the most Russian gasoline and diesel per day in volume. France alone consumes 125 thousand barrels per day.
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Russia is also the largest exporter of natural gas, with 197.7 billion cubic meters. And most of it goes to Europe. In fact, Germany, with 56.3 billion cubic meters, is the largest country receiving Russian natural gas through pipelines.
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Russia also It is the third country in the world in exports of coal used in power plants.. Europe is the largest buyer of Russian coal.
Regarding agricultural exports, Russian wheat is exported all over the world. Russia and Ukraine have interrupted shipments due to the crisis, which is already inevitably affecting the world food supply. “The result could be an imminent hunger crisis”alert ZeroHedge.
As for edible oils, Russia is the second largest exporter of sunflower oil and one of the main suppliers of fertilizers.
In this context, a decline in fertilizer exports will make it harder for farmers in Europe, South America and Asia to harvest robust crops this yearwhich could further strain the global food supply.
Moscow is also a key supplier of industrial and precious metals. It is among the main exporters of nickel, a fundamental metal for electric car batteries. China, Europe and the United States are the largest buyers of Russian nickel and as a result of this scenario, Tesla has raised the prices of its cars twice in recent weeks.
As if all this were not enough, most of the world depends on Russian aluminum. Is that Russia is the world’s second largest exporter of palladium and platinum. And the United States, the United Kingdom, Japan and Hong Kong are the main importers of Russian palladium, used mainly in automobile catalysts.
And finally, Russia is also the world’s third largest exporter of steel.
“The West’s attempt to isolate Russia from the world economy with sanctions and restrict its trade around the world produces unimaginable inflation that could lead the world into a hell of stagflation. Commodity shortages could occur as prices skyrocket”, concludes Tyler Durden, analyst of the blog that, with 1.2 million followers on Twitter, ranks 54th among US internet sites.
KEEP READING:
The 5 essential raw materials that will be affected by the Russian invasion of Ukraine
Russia has blocked half of its gold and currency reserves due to international sanctions after the invasion of Ukraine
Ukraine: what can happen if the attacks spread to a NATO country
Source-www.infobae.com