Summary: If the conflict continues, the world trade map will be completely reshaped.
For most companies, when dealing with the crisis brought about by the outbreak of the conflict between Russia and Ukraine, a key part is to make their businesses, operational models, and supply chains more resilient.
Executives' management styles are becoming increasingly cautious, with the focus shifting from traditional indicators such as cost reduction and efficiency improvement to how to enhance resilience. The corporate governance principle is gradually changing from "seizing opportunities" to "being prepared for the worst".
But for many companies, the first step in dealing with it is to understand specifically what impacts on the supply side, including which commodities Russia, Belarus, and Ukraine mainly supply to the world.
From the chart, it can be seen that the commodities supplied to the world by the above three regions are mainly concentrated in oil and gas, ores, pesticides, and grains.Among them, the top three items with the highest share of exports are sunflower oil, potassium fertilizer, and natural gas.
The shortage of commodities has led to soaring prices, causing significant impact on downstream customers, especially industries such as manufacturing, energy, and textiles that heavily rely on importing the mentioned commodities.
The scarcity of commodities, such as oil, natural gas, and grains, has caused broad price increases, leading to synchronous price hikes in all consumer goods across the society, ultimately making all consumers bear the cost.
The rise in ordinary consumer goods has greatly increased the households' expenses, forcing the government to introduce a series of economic stimulus plans...