When we think about the war in Ukraine we think of the sanctions put on Russia and price rises of many products. However there are some countries and industries that are benefiting by the sanctions put on Russia. One such industry is steel and ore. Ukraine and Russia are main suppliers of pig iron. Now Turkey, Brazil, and India have started to take on the role of supplying this iron to Europe to meet their quotas. Another industry affected is the copper industry. Russia supplies about 4% of cooper for the world. There is already a deficit in the supply so countries like China, Chile, and Indonesia could benefit from an increased deficit in supply. Other industries that are being affected are aluminium, nickel, oil, gas, and agricultural products, and ammunition. The largest benefactors are the countries that also produce these products. If they are able they can become larger suppliers for countries in need of solutions like the EU. However when there is already a deficit in supply loosing a supplier continues to do harm for the industry. I think what will be interesting to follow will be when the war in Ukraine ends what will be the move for EU countries and the US with relations to Russia. Will they go back to importing from Russia or will they seek out other suppliers to satisfy their needs.
https://gmk.center/en/posts/war-in-ukraine-who-benefits-from-sanctions-price-rise-and-materials-supply-crisis/
2 comments:
You mentioned ammunition as being one of the affected industries. I'm curious to know which country has been the main supplier of ammo for the war. Given that both Russia and Ukraine mostly use Soviet-era weaponry, I would assume the ammo manufacturer would be some eastern country. Could it be possible that a Russian ally like China or Belarus could be providing non-NATO spec munitions? Or, alternatively, could some western country been supplying ammo? This could possibly be a reason for why the war will seemingly never end. There may be too much profit left on the table if the fighting stops.
You mentioned at the end of your post that it will be interesting to follow U.S. and Russian relations post their war with Ukraine. I think it is likely the U.S. will entire a Cold-War like situation with Russia, as well as China, in that there will be continued embargoes on oil and contention between Russia and NATO.
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