26-02-2022, 08:26 PM
Five essential commodities that will be hit by war in Ukraine
https://theconversation.com/five-essenti...ine-177845
https://theconversation.com/five-essenti...ine-177845
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Five essential commodities that will be hit by war in Ukraine
26-02-2022, 08:28 PM
5. Microchips
Shortages of microchips were a major problem throughout 2021. Some analysts had been predicting that this problem would ease in 2022, but recent developments might dampen such optimism.
As part of the sanctions towards Russia, the US has been threatening to cut off Russia’s supply of microchips. But this rings hollow when Russia and Ukraine are such key exporters of neon, palladium and platinum, all of which are critical for microchip production.
About 90% of neon, which is used for chip lithography, originates from Russia , and 60% of this is purified by one company in Odessa. Alternative sources will require long term investments prior to being able to supply the global market.
Shortages of microchips were a major problem throughout 2021. Some analysts had been predicting that this problem would ease in 2022, but recent developments might dampen such optimism.
As part of the sanctions towards Russia, the US has been threatening to cut off Russia’s supply of microchips. But this rings hollow when Russia and Ukraine are such key exporters of neon, palladium and platinum, all of which are critical for microchip production.
About 90% of neon, which is used for chip lithography, originates from Russia , and 60% of this is purified by one company in Odessa. Alternative sources will require long term investments prior to being able to supply the global market.
26-02-2022, 08:53 PM
1. Energy
Many European countries are heavily dependent on Russian energy, particularly gas through several vital pipelines, and this may have coloured their approach to the crisis. Russian gas reliance has been suggested as the reason Europe has been reluctant to remove Russia from the international payments system SWIFT, for example, though it’s worth pointing out that the Germans have indefinitely suspended new Baltic gas pipeline Nord Stream 2.
Many European countries are heavily dependent on Russian energy, particularly gas through several vital pipelines, and this may have coloured their approach to the crisis. Russian gas reliance has been suggested as the reason Europe has been reluctant to remove Russia from the international payments system SWIFT, for example, though it’s worth pointing out that the Germans have indefinitely suspended new Baltic gas pipeline Nord Stream 2.
26-02-2022, 09:29 PM
2. Food
Global food prices already rose sharply during 2021 due to everything from higher energy prices to climate change. Food producers are likely to come under further pressure as prices of key inputs rise now.
Russia and Ukraine together account for more than a quarter of global wheat exports, while Ukraine alone makes up almost half of exports of sunflower oil. Both are key commodities used in many food products. If harvesting and processing is hindered in a war-torn Ukraine, or exports are blocked, importers will struggle to replace supplies.
Some countries are particularly dependent on grain from Russia and Ukraine. For example, Turkey and Egypt rely on them for almost 70% of their wheat imports. Ukraine is also the top supplier of corn to China.
Global food prices already rose sharply during 2021 due to everything from higher energy prices to climate change. Food producers are likely to come under further pressure as prices of key inputs rise now.
Russia and Ukraine together account for more than a quarter of global wheat exports, while Ukraine alone makes up almost half of exports of sunflower oil. Both are key commodities used in many food products. If harvesting and processing is hindered in a war-torn Ukraine, or exports are blocked, importers will struggle to replace supplies.
Some countries are particularly dependent on grain from Russia and Ukraine. For example, Turkey and Egypt rely on them for almost 70% of their wheat imports. Ukraine is also the top supplier of corn to China.
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