Distortion of commodity markets and trade impacts supply chains the most
The biggest hit to supply chains would come from any severe disruption to Russian energy exports, as several European countries are dependent on Russia for energy. But even in the absence of this, there are more challenges to come. In addition to exporting agricultural products such as wheat, corn, and sunflower oil (India, China, the Netherlands, and Egypt are large consumers) both Ukraine and Russia export large amounts of steel, palladium, platinum, and nickel, among others.
Selected imports from Russia based on most traded goods between EU and Russia %-share of Extra-EU imports
Selected imports from Russia based on most traded goods between EU and Russia %-share of Extra-EU imports
fact, 81% of nickel ores and concentrates of the EU’s Extra EU-27 imports come from Russia. Specifically, the EU gets 30.1% of its nickel imports, 48.5% of semi-finished products of iron or steel and more than 20% of copper and platinum from Russia. Belgium and Denmark receive over 90% of their Extra-EU share of semi-finished steel from Russia while Latvia relies on Russia for 92% of its fertilisers. Russia’s share in German Extra-EU imports for semi-finished iron or steel products amounts to 74% and 46.1% for copper. Even if the trading amounts are not always high, there 1are clear dependencies in some areas.
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