There are also wider implications for locations many miles away from the region that could be heavily impacted by macro changes to geopolitical risk. This could impact crop yields in other countries at a time when the Ukraine harvest is affected by the ongoing war, and extend the impact of the crisis well beyond the region.Īn escalation of events in Ukraine could draw bordering countries directly into the conflict and could lead to the conscription of eligible employees to shore up local defense forces. Similar concerns have been raised in relation to the increasing costs or shortages of fertilizer - of which Russia is a major exporter. Nickel, for example, which is critical for the battery revolution, is heavily sourced from Russia and a large portion of the neon gas used in semiconductor production is sourced from Ukraine.įor countries and businesses that rely on imports of wheat, corn, and sunflower oil from Russia and Ukraine, there may be more severe impacts, such as potential food scarcity and price stability issues that could lead to social and political unrest. And single points of failure will be put into sharp focus. The Russia-Ukraine crisis is further stressing these fragile supply chains, an issue exacerbated by the highly complex and evolving set of sanctions and counter-sanctions involving Russia and restrictions on air, sea, and land transportation in the region.Īs the conflict continues, many raw materials and agriculture commodities are becoming more expensive and there may be shortages. While primarily a human crisis, the pandemic demonstrated the fragility of the global economy and modern supply chains when faced with big macro shocks. The Ukraine crisis is taking place at a time when countries around the world are still dealing with the repercussions of the COVID-19 pandemic. But consideration should also be given to what this crisis means for longer-term business resilience. Their immediate attention should remain focused on the safety and wellbeing of staff and their families in that region and beyond. The unprovoked invasion of Ukraine by Russia has led to a major humanitarian crisis, with numerous lives lost and several millions of people displaced as they have fled for their safety.Īs one of the most significant geopolitical crises of our time continues, businesses - whether or not they have operations or exposures in Ukraine or Russia - are facing new and escalating challenges. Papua New Guinea(English) Papua New Guinea(English).New Zealand(English) New Zealand(English).United Arab Emirates(English) United Arab Emirates(English).Saudi Arabia(English) Saudi Arabia(English).South Africa(English) South Africa(English).Nederland(Nederlands) Netherlands(Dutch).Netherlands(English) Netherlands(English).Luxembourg(Français) Luxembourg(French).

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