The impacts stretch beyond inflation and corporate retreats to critical shortages upstream for semiconductor and EV supply.
Russia’s ongoing war against Ukraine is first and foremost a human tragedy and has fast developed into a humanitarian crisis.
But it is also apparent that in an increasingly globalised and interconnected supply chain, the conflict’s ramifications will profoundly impact reshape geopolitics, economies, trade and the trajectory of the automotive industry for years if not decades to come.
Immediate supply chain disruption
Component, material and energy supply chains were already in a fragile recovery phase following disruptions from the Covid-19 pandemic and subsequent semiconductor shortages. The Ukraine crisis has severely compounded those difficulties. It has impacted vehicle production not only in the Ukraine and in Russia but has also destabilised supply of components for other factories in other parts of Europe and beyond – with other risks as well in the upstream supply chain.
For example, there has been a total suspension in production at the ’Eurocar’ plant in Solomonovo, Ukraine, which assembles the Skoda Fabia, Superb, Karoq and Kodiaq for local markets. In Russia, there have been reports of component shortages causing production stoppages. Hyundai has suspended production at its St. Petersburg plant due to component shortages. Toyota halted production at its plant also in St. Petersburg because of disruptions to its supply chains. Avtovaz, which is majority-owned by Renault Group, is reported to have stopped production following disruptions (though it appears to have restarted). Renault, which has a factory in Moscow, was also reported to be affected.
Other European OEMs have also made the decision to stop production and operations in Russia as part of a wider corporate retreat, including the Volkswagen Group, BMW and Mercedes-Benz. Ford and General Motors had already pulled out of Russia or plan to wind down operations. Many more are set to follow.
The impacts are also being felt further afield, demonstrating the interconnectedness of supply chains. The VW plant in Zwickau, Germany has had to suspend production because of shortages of wiring harnesses sourced from suppliers in and around Ukraine. In the Czech Republic, Skoda has reported critical shortages of components from suppliers in Ukraine, which has limited production of the Enyaq IV. Even in the UK, the BMW Cowley plant in Oxford has had to halt production of the Mini because of components shortages triggered by the Ukraine crisis.
In terms of suppliers, Leoni, a wiring supplier in Ukraine has idled plants there, and is instead supplying OEMs from its plants in other countries. Magna has suspended operations in Russia, where it has six plants.
There are likely to be much more challenging trading conditions for vehicle manufacturers automotive suppliers and stakeholders across the supply chain. Plant stoppages, combined with supply chain disruption, port closures and restricted transit routes across Europe are likely to become the norm in the coming months and beyond. That combined with spiking prices in energy and commodities because of blockages, sanctions or trade bans are only going to increase volatility for supply chain managers.
Energy supply shocks
The international consensus by many economies to apply severe economic and financial sanctions on Russia has been unprecedented and amounts to an economic war – and one that will have profound and worrying implications for the global economy and the automotive supply chain.
It’s a high stakes gamble. While NATO allies may have few non-military options other than to crash the Russian economy, it also brings with it considerable risks, including unleashing even higher levels of inflation, an economic shock triggering a recession, stock market crash or even a major period of economic depression. The resulting increases in unemployment and pain felt by consumers would harm economies in the West as well as Russia, and ultimately weigh significantly on the automotive industry.
The most significant economic impact is likely to be felt in energy supply. Russia is a major exporter of gas and the world’s second largest oil exporter. The conflict has already caused wholesale gas prices to surge to more than 10 times ‘normal’ levels and the price of oil has now exceeded $120 per barrel. At the time of writing oil and gas exports from Russia have been exempt from sanctions – however, challenges in paying for Russian gas and oil is part of the reason for the price rises.
There has also been talk at the highest political level by the US and NATO allies of applying an embargo on Russian oil to cut off its main source of income. US president Joe Biden has said the US would ban imports of Russian oil and gas, with the UK government announcing that it would also phase out Russian oil by the end of 2022 (an announcement on gas is expected soon). The EU, which depends much more heavily on Russian gas, has announced a plan to phase out its use by 2030. Oil and gas prices are likely to rise even higher as supply is diverted from other sources and businesses and consumers scrambled to reduce consumption. Russia could also retaliate by cutting off vital gas supplies to Europe, as its government has already threatened. It would be a very painful transition and appears less likely to happen in the short term in Europe, with opposition already voiced from Germany. The transition away from Russian oil and gas will require not only more renewable energy sources but also increasing supply from elsewhere, for example by asking OPEC to increase output – though that too is fraught with political difficulties.
Plant stoppages, combined with supply chain disruption, port closures and restricted transit routes across Europe are likely to become the norm in the coming months and beyond. That combined with spiking prices in energy and commodities because of blockages, sanctions or trade bans are only going to increase volatility for supply chain managers.
Natural gas price spikes also clearly impact LNG prices. Increasingly, manufacturers and logistics operators have been turning to LNG to reduce emissions compared to diesel, including in the maritime sector and for larger commercial vehicles. There are efforts to expedite investments in LNG shipping, ports and facilities to localise supply and achieve better energy security – potentially with more LNG sourced from North America, or the Middle East, instead of Russia. But these transitions will also take time.
Russia-Ukraine hits mineral supply chains
Supplies of minerals like palladium, nickel and neon gas are hugely impacted by the crisis and could impact semiconductor and EV production
Impacts on chip and EV supply chains
While impacts from the price of gas and energy are already apparent, the conflict has revealed more about the role that both Russia and Ukraine play in the upstream supply chain of key minerals which impact on production of vital components like semiconductors and batteries.
For example, Russia is a major exporter of aluminium, steel, palladium and nickel. Palladium is a rare metal used in semiconductor production and catalytic converters for ICE vehicle exhaust systems. Russia produces up to 45% of the world’s palladium, with the Ukraine also a significant supplier of the metal.
Russia also produces a large proportion of the world’s nickel, a metal used in lithium-ion batteries for electric vehicles. (Read more on the value chain for lithium-ion batteries.)
Ukraine also produces much of the world’s neon gas, which is used in around 75% of the lasers that etch circuits onto semiconductors. Neon gas is a by-product of steel production on the type of older, unmodernised plants usually found in Russia and Ukraine, hence there is not an easy substitute elsewhere, apart from China which has relied on a supply of neon gas.
Sanctions on export controls of sensitive technology to Russia, including semiconductors, could seriously damage Russian vehicle production. Intel, Nvidia and TSMC have agreed to follow the sanctions. Semiconductor prices have not yet risen because of neon gas or palladium shortages, but that is only because of the long lead times in chip manufacturing. The industry will likely face another squeeze in cost and supply in the coming months.
OEMs retreat from Russia
The collective decision to suspend operations in Russia because of the invasion has been a striking characteristic of the crisis thus far, as OEMs take an ethical stance against the violence. Most have suspended production, exports and sales in Russia until further notice, including Aston Martin, Bentley, BMW, Daimler Trucks, Ford, GM, Honda, Hyundai, Jaguar Land Rover, Mercedes, Nissan, Porsche, Stellantis, Toyota, Volvo Cars and VW Group.
In practice, automotive manufacturers might have had little choice. Most would have struggled to operate in Russia because of sanctions, the collapse of the rouble, difficulties in making payments, supply chain and logistical difficulties. Doing business in Russia would also bring reputational risk because of public backlash. In most cases, the revenues and profits that automotive companies derive from Russia are no more than a few percentage points globally. And with shortages of vehicle inventory and supply to other, larger markets, pulling out of a minor market such as Russia could even help redivert some supplies elsewhere.
Renault is exposed in Russia
Renault Group controls 51% of Avtovaz (pictured) and has a Renault plant in Moscow, making it one of the OEMs most exposed to the Russia crisis
A notable omission from the above list is Renault (a carmaker 15% owned by the French government), which is also the OEM most exposed in Russia. Renault has a 51% stake in Avtovaz, which has a plant in Togliatti that assembles Ladas, 90% of which are sold within Russia. Russia is the Renault Group’s second largest market and contributes around $5.5 billion, or 12%, to its balance sheets.
Consequently, the French OEM’s share price has slumped since the crisis as investors fear that the sanctions, which include capital controls, may even prevent Renault from accessing revenues or profits, and forcing it to downgrade its financial forward guidance. But for Renault to sever its ties with Avtovaz would be politically difficult and a huge financial loss given the $2 billion that Renault has invested in the venture. The collapsing Russian economy is likely to mean that demand for Ladas will decline sharply and Avtovaz falls back into losses, leaving no easy way out for Renault.
Inflation – what happens as cars get more expensive
If the price of energy, components and logistics all increase sharply, then vehicle prices will rise commensurately with profit margins also squeezed. The result will be lower vehicle sales and damage to the wider automotive industry.
And if rampant inflation continues to drive the price of energy, commodities, food, and vehicles, then central banks will be forced to reign that in by further raising interest rates. This is the spectre of the so-called ‘stagflation’, with economic stagnation at the same time as high inflation. If inflation erodes into people’s disposable income, then they increasingly have less to spend on discretionary purchases items such as cars.
If oil prices continue to stay high – and all the signs are that this is going to be the new normal – then rising fuel prices will bring into question the viability and attractiveness of car use for many people on lower incomes. Interestingly, because the US has lower fuel taxation rates compared to other parts of the world, the American market is in many ways even more exposed to oil price rises than in Europe, where 60-70% of fuel prices is taxation. Consequently, there are already signs that consumers are stockpiling fuel in fear of future price rises.
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Impact on electrification: a risk, but also opportunity for governments
The conflict could even have long-term implications for the growth of vehicle electrification. The Ukraine crisis will make the sourcing of the critical materials necessary for electrification more difficult: namely nickel, lithium, palladium, semiconductors and neon gas. Shortages of these materials might not only cause disruption and limit production, but potentially affect the ability of OEMs in the shift to EVs (which require more semiconductors than ICE and rare metals in the batteries).
Such disruption brings into questions the entire viability of meeting various CO2 emissions regulations, fuel consumption targets and national ICE bans.
However, with oil prices set to remain high for the foreseeable future, the consumer case for switching to electric vehicles will also rise, too. This growth in demand, coupled with supply chain disruption, would add to a growing imbalance between EV supply and lead to longer production and delivery times for consumers.
Should this demand rise, western governments could use the opportunity to accelerate the transition to renewables and net zero across all industries including automotive, like what some governments in Europe did in the wake of the Covid crisis. That would include maintaining targets and increasing stimulus, incentives, support and investment to align the goals of Russian sanctions, energy independence and climate change mitigation.
Should [EV] demand rise, western governments could use the opportunity to accelerate the transition to renewables and net zero across all industries including automotive, like what some governments in Europe did in the wake of the Covid crisis.
The bottom line for the automotive supply chain
What does all this mean for automotive volumes and the future industry outlook?
Russia’s invasion of Ukraine brings the risk of serious macroeconomic impacts: a slowing of economic growth, even higher inflation, possibly even stagflation, rising unemployment and falling consumer confidence.
A highly protracted conflict would likely lead to a downward revision of sales volume forecasts. The effect of ongoing hostilities against Ukraine and the geopolitical repercussions of that – sustained sanctions, trade bans, supply disruption, higher military spending – means that the Ukraine crisis could have as great or even a longer-term global economic impact than the Covid crisis and its aftermath. At a minimum that would mean even more fragile supply chains for the foreseeable future, and lower sales and production volume over the next decade. But there could ultimately be an accelerated transition to energy independence and electrification – depending on how governments react.
Russia-Ukraine crisis: key impacts for the automotive supply chain
- Global vehicle production and demand volumes revised downwards, potentially over the long term
- Reduced production and demand volumes in countries in and adjacent to the conflict area but less severe affects across western Europe and global markets
- The rise in oil and commodity prices will have a significant impact on higher inflation
- Disruption on already distressed supply chains likely to be greatly exacerbated, including for semiconductors and catalytic converters
- Disruption to freight routes: port closures and shipping lines divert from Black Sea and Russian ports; airspace effectively closed over Russia, Belarus and Ukraine; China-Europe rail and landbridge suspensions
- Key materials shortages potentially a barrier to the transition to electrification
- Growing mismatch of EV inventory if demand rises with higher oil prices but supply is hurt by supply chain constraints
- Governments may further incentivise transition from Russian oil and fossil fuels with increased support and stimulus for EV sales and production
Daniel Harrison is automotive analyst for Automotive from Ultima Media, the business intelligence arm of Automotive Logistics. He will publish an upcoming report forecasting the volume impact and powertrain mix outlook in April:Global Automotive Powertrain Forecast 2018-2035. For more information, contact us.
The Russia-Ukraine war led to an increase in prices of several commodities including fertilizers, food products, and oil and gas. The supply chain disruptions have increased freight charges, created container shortages, and lowered the availability of warehousing space.Is the war in Ukraine affecting the automotive industry? ›
How is the Ukrainian war affecting car production? Already much has been made of the challenge around oil and gas supply chain disruption, since Russia supplies 40% of Europe's gas supplies. For the automotive industry, the upheaval continues on four fronts; raw materials, production, sanctions and logistics.How the war in Ukraine has affected automotive supply chains? ›
Decreasing revenues and increasing costs. 'The war in Ukraine has affected the European automotive industry in many respects. Disrupted supply chains meant that production lines and factories were closed at very short notice. This led to unpredictability, which is the worst thing for our industry.Will Russia-Ukraine War affect automobile industry? ›
The Russia-Ukraine war has had immediate impact on the automotive sector in four key areas. In this brief paper, we look at how the war and sanctions on Russia have already disrupted the automotive supply chains and markets.How will Russia invasion affect supply chain? ›
Russia's decision to invade Ukraine further complicates global supply chain challenges and will increase inflationary pressures. In our most recent chartbook, we note that persistent pandemic-related disruptions to the supply chain will mean continued shortages of goods at least through 2022 and likely beyond.How does the Russia Ukraine war affect the shipping industry? ›
The maritime industry has seen an increase in global vessel demand and the cost of shipping, according to the United Nations Conference on Trade and Development.Which industries will benefit from Ukraine war? ›
- Oil Sector. Russia is the third-largest exporter of crude oil globally. ...
- Edible Oil. Ukraine and Russia are the major suppliers of sunflower oil. ...
- Agriculture Sector. ...
- Automobile Sector. ...
- Base Metals.
War has wide-reaching effects. Over several generations without a major war affecting the industrialized economies of Europe, global trade has grown more and more interconnected. That leaves nations far from the hostilities dealing with some surprising ripple effects.Has Toyota stopped production in Russia? ›
Toyota has decided to end vehicle production at its Saint Petersburg plant in Russia. On March 4th we had to suspend manufacturing operations at our plant in Saint Petersburg due to the interruption in supply of key materials and parts.Will Ukraine war affect IT industry? ›
Nearly 80% of IT companies in Ukraine were able to close new deals during wartime, and nearly 60% plan to grow their operations by 30%. Merely 2% of all IT companies in Ukraine were forced to discontinue their operations due to the war.
Ukraine supplies 70 percent of the world's output of neon, a critical gas that runs lasers needed to manufacture microchips. To make microchips, manufacturers use lasers run by neon, and Ukraine is the source for 70 percent of the world's output of neon.How the Ukraine war is affecting oil and gas markets? ›
Oil prices were rising globally even prior to the full escalation of the war. However, when Russia attacked Ukraine, the price of crude oil in the global market skyrocketed from around $76 per barrel at the start of January 2022 to over $110 per barrel on 4 March 2022.Which companies will benefit from Russia war? ›
- #1 Tata Steel. Russia is the 5th largest steel producer, while Ukraine ranks 14th globally. ...
- #2 Dr. Reddy's Lab. ...
- #3 Indian Oil Corporation (IOC) ...
- #4 Gas Authority of India Limited (GAIL) ...
- Closing remarks...
While global prices for oil, gas and coal have been rising since early 2021, they skyrocketed after Russia's invasion of Ukraine, sending inflation to levels not seen for decades in the region.How many vehicles have the Russian lost in Ukraine? ›
The same independent verification exists for most of the other Ukrainian claims. Recently, the Pentagon acknowledged that the Russian military has lost thousands of combat vehicles of all types, including over 1,000 tanks, and dozens of fighter jets and helicopters.What happens to supply chains during war? ›
Warfare threatens supply chain stability by exposing war-zone firms to the inventory- accumulation hazard. Policies should strive to spread the inventory-accumulation risk across the supply chain. Governments play critical roles in promoting supply chain stability and facilitating logistics in conflict zones.How is the war in Ukraine affecting supply trade and inflation? ›
The Russian invasion caused a massive humanitarian crisis – almost seven million Ukrainians have fled the country. The conflict and resulting sanctions have disrupted exports from the region for commodities like metals, food, oil and gas, pushing up inflation to levels not seen in decades.What is causing supply chain issues 2022? ›
Driver shortages, logistics provider capacity issues, inflation, shipping delays, increased freight costs, depleted inventory levels, labour shortages and demand peaks are driving discussions and require attention.How does the war in Ukraine affect businesses? ›
Due to the start of the war and the sanctions imposed, direct supply chains with Russia and Ukraine, but also supply chains via Russia to Asia, have broken down. As a result, prices for many raw materials, energy, intermediate products and transportation services have increased significantly.What is the impact of Russia's invasion of Ukraine on the global supply chain the shipping industry and the seafarers? ›
The biggest impact of the war so far has been on vessels operating in the Black Sea and/ or trading with Russia. Ukraine's major ports, including that of Odessa, were closed due to the conflict and a Russian naval blockade of Ukraine. The country ships over 70% of its exports, including 99%  of its corn exports.
US ban on Russian oil imports
Strong economic recovery coupled with low investment in oil production were hugely exacerbated by the Russian invasion of Ukraine. This sent the oil price to stratospheric levels and this is being passed over to consumers at the pump.
Energy: The Russia-Ukraine war remains the biggest risk to oil and gas prices.What companies are benefiting from Ukraine invasion? ›
Russia's Invasion of Ukraine Bodes Good Business for Arms Manufacturers Worldwide. News reports reveal that Raytheon and Lockheed Martin, globally amongst the most advanced armament makers, were openly telling their investors that the Ukraine conflict was good for business.What is Ukraine the main supplier of? ›
Ukraine is one of the main world exporters of grains as well as vegetable oils. The main agriculture export products are Corn and Wheat. In 2021 Ukraine was the second largest supplier of grains for the European Union (EU) and a large food supplier for low and middle-income countries in Asia and Africa.Will Ukraine war affect stock market? ›
The Ukraine conflict remains a potential source of increased short-term market volatility. Disruption of Russian energy exports as a result of the conflict has raised global energy and food prices.Are car prices going up because of Ukraine? ›
The war in Ukraine is increasing the cost of metals used in vehicles, which may soon reflect in higher auto prices.Will Ukraine war affect oil prices? ›
The Ukraine conflict and the resulting sanctions on Russian oil and gas have resulted in windfalls for oil and gas producers such as those in the GCC as Western states sought to wean themselves off reliance on Russia. Zawya asked analysts what an earlier-than-expected end to the conflict would mean for oil producers.Is Honda still selling to Russia? ›
Honda will stop selling its vehicles on the Russian market in 2022.Is Ford still operating in Russia? ›
26, 2022 – Ford Motor Company has finalized the exit of its previously suspended operations in Russia through the sale of its 49 percent share in the Sollers Ford Joint Venture.Has Ford Motor Company pulled out of Russia? ›
Ford also said it has completed its exit from Russia, announcing Wednesday that it has sold its 49% share in the Sollers Ford Joint Venture.
Citizens were flocking to the IT industry in droves, universities were pumping out new talent and a wave of large global technology companies were looking to the country for employees. However, war has forced thousands of tech employees to flee the country.What are the business implications of Russia invading Ukraine? ›
The price of fuels has further risen as a consequence of Russia's unprovoked and unjustified aggression against Ukraine, which has also led to concerns related to the security of energy supply in the EU. Russia's decision to suspend gas deliveries to several EU member states has further impacted the situation.Why can't the US make the chips for cars? ›
While the chip shortage can be attributed to multiple factors, the COVID-19 pandemic is the primary cause. At the beginning of the pandemic, automakers shut down factories and temporarily paused vehicles production. Meanwhile, lockdowns and virtual work and school caused a surge in demand for other electronics.Who supplies Toyota chips? ›
Denso, one of the world's top automotive semiconductor manufacturers and a key supplier to Toyota, may consider spinning off its chip business, which generates around 420 billion yen ($3.1 billion) in sales, the company's chief technology officer said.Why is China not producing chips for cars? ›
The company explained that partly to blame for the extended shortage is the lack of machines required in the process of chip manufacturing. In their turn, the companies that are building the machinery used in the production of chips, including laser systems, are struggling with a lack of materials and components.What impact is the war in Ukraine having on world gas supplies? ›
Oil and gas have continued to flow from Russia to Europe, even through the pipelines which cross Ukraine. Since the invasion, energy prices have risen sharply, significantly benefiting Russia and other oil and gas producers.How has the Ukraine war affect fuel prices? ›
As of May 2022, TME's average wholesale price amounted to 1,112 U.S. dollars per metric ton of oil equivalent, up by more than 133 percent in comparison to 2018/2019.How is the Ukraine war affecting commodity prices? ›
As one of the key grain exporters, Ukraine exports approximately 18 million tons of wheat and 25 million tons of corn every year. The war and resulting production losses will significantly reduce Ukrainian wheat and corn supplies to the global market in 2022/23.What commodities do well in war? ›
During the war, the most important and beneficial commodity that you can buy is gold. It doesn't only increase in value over time but also helps in protecting the purchasing power of your money.What does the Russian war mean for the stock market? ›
“A Russian defeat would likely see energy prices fall, inflation head lower, interest rate hike expectations get ratcheted down, and the euro and the yen bounce back. And equity markets everywhere would rip higher,” Gave writes. That's the most optimistic outcome. It's also one that may be the least likely.
The Ukraine conflict is likely to have a continued inflationary impact on the costs of raw materials, energy, logistics, and digital services. Oil and gas prices, in particular, have already skyrocketed across the globe due to the high dependence on imports from Russia, the supplier of 40% of Europe's gas.How does the Russia Ukraine war affect the world? ›
The war also continues to have amajor effect on the global markets and food supply. Ukraine's inability to export grain throughout the first five months of the conflict worsened a global hunger crisis, with catastrophic impacts throughout the world.Will the war in Ukraine affect car production? ›
How is the Ukrainian war affecting car production? Already much has been made of the challenge around oil and gas supply chain disruption, since Russia supplies 40% of Europe's gas supplies. For the automotive industry, the upheaval continues on four fronts; raw materials, production, sanctions and logistics.How many tanks have the Russians lost in the Ukraine? ›
And it's a staggering figure as well. According to the Dutch warfare research group Oryx, Russia has lost 1,450 tanks since the war began, nearly 900 of which have been damaged or destroyed. The rest were abandoned by the Russians, and many of those ultimately have since been captured by the Ukrainians.How many fighter jets has Russia lost Ukraine? ›
I write about ships, planes, tanks, drones, missiles and satellites.What is the impact of Russia Ukraine war in the economy? ›
While global prices for oil, gas and coal have been rising since early 2021, they skyrocketed after Russia's invasion of Ukraine, sending inflation to levels not seen for decades in the region.How does the Russia and Ukraine war affect the economy? ›
Because of its dependence on Russian oil & natural gas, Europe appears to be the region most exposed to the consequences of this conflict. Replacing all Russian natural gas supply to Europe is impossible in the short to medium run and current price levels will have a significant effect on inflation.How has the war in Ukraine affect the economy? ›
The Russia-Ukraine war is having an outsized impact on the global supply chain, impeding the flow of goods, fueling dramatic cost increases and product shortages, and creating catastrophic food shortages around the world, according to experts at a virtual symposium hosted by the MIT Center for Transportation and ...What industries will benefit from war in Ukraine? ›
Business is booming for arms makers, energy companies and camping equipment manufacturers -- due to the war in Ukraine. Many European and American companies are benefiting from the crisis.How does war affect supply chain? ›
Warfare threatens supply chain stability by exposing war-zone firms to the inventory- accumulation hazard. Policies should strive to spread the inventory-accumulation risk across the supply chain.
From a trade perspective, the biggest consequence of the war is the rise in commodity prices. There are 3 main categories of commodities: energy, agriculture, and metals. The war has affected all 3. The considerable price increases have an effect on international supply chains and markets.How does the Russian Ukraine conflict affect the world? ›
The war also continues to have amajor effect on the global markets and food supply. Ukraine's inability to export grain throughout the first five months of the conflict worsened a global hunger crisis, with catastrophic impacts throughout the world.How did the war in Ukraine affect the stock market? ›
US stocks rose during the early days of the war and though markets have turned volatile since the Russian military entered Ukraine, that volatility more reflects uncertainty about US monetary policy rather than Russian military policy.Who profits most from Ukraine war? ›
Which companies will make the most money? US defence contractors are expected to be the biggest beneficiaries. Washington is sending 6,500 Javelin anti-tank missile systems, which are made by Raytheon and Lockheed Martin.What does Ukraine supply to the world? ›
Agricultural products are Ukraine's most important exports. In 2021 they totaled $27.8 billion, accounting for 41 percent of the country's $68 billion in overall exports. Ukraine is normally the world's top producer of sunflower meal, oil, and seed and the world's top exporter of sunflower meal and oil.What industries will be affected by Ukraine? ›
The more energy-intensive sectors are the ones most directly affected, especially transportation, the auxiliary construction industry, fishing, metallurgy and the chemical industry (see first chart).What the Russia Ukraine crisis means for businesses? ›
Russia's assault on Ukraine has caused Western companies to respond to several challenges in the region, from keeping their employees safe to dealing with supply-chain issues. Some executives are also trying to assess whether their businesses could face disruptions as a result of Western sanctions.