War. The Russian attack on Ukraine has been changed by all cases for more than a month. Experts around the world are trying to predict short and long-term consequences for other industries, including industrial automation. One of the key issues is the fact that Russia is one of the most important suppliers of strategic minerals.
Table of Contents
From the beginning of the invasion, a lot of space was devoted to the boycott of Russia. Other companies close their branches in this country or severely limit their activities. There are only a few who, however, must take into account public criticism.
Can the Russians deal cards?
However, it must be remembered that each medal has two sides and the same is the case here. After all, many countries are dependent - to a greater or lesser extent - on Russian gas, oil and coal, but that is not all. Russia and Ukraine currently account for 25 percent of the world's wheat trade, 30 percent of the global barley volume, and finally as much as 60 percent of the world's sunflower oil production.
However, fuels and the global supply factor for the food sector are still not everything. As the latest Deloitte report shows, Russia also deals cards when it comes to access to strategic minerals. As many as 35 of them - those that are indispensable in many industries - can be found, mined, and then bought only in Russia, which may be difficult if Moscow is reduced to the role of a global pariah.
Importantly, these minerals are considered absolutely essential by the US. The local Department of Internal Affairs recognized them as crucial for the efficient functioning, economic interests and national security.
Minerals worth their weight in gold
The most sensitive minerals are, of course, the platinum group metals, for which Russia is responsible for 30 percent of the world's production. Of course, this group includes palladium, which is one of the main components of car catalysts, and the price of which has increased by as much as 80 percent since the beginning of hostilities.
The same applies to neon, which is used as a refrigerant, but also in lightning arresters, high-voltage indicators, wavemeter lamps, vacuum tubes, and TV tubes. Neon is also indispensable for the production of lasers and, after all, it plays a colossal role in space and medical research. So it has a lot of applications, and its presence on the markets today is largely dictated by the whim of Vladimir Putin, who has already proved that it is difficult to treat him as a reliable partner, indeed ... it is difficult to treat him as a partner in any talks. Besides neon and palladium, the rest of the world also depends heavily on the Russian leader for titanium - 13 percent, and nickel - 11 percent.
Connected vessel system
Regarding the security of the United States, which is, after all, on the front line of sanctions against Russia, one must also remember that Washington is really playing va banque. As Dun & Bradstreet reports, as many as 374,000 American companies rely on Russian suppliers, and the total number of business and economic relations between the USA and Russia is slightly over 7.5 million. So we are talking about dependencies on and connections on an unprecedented scale, which in the face of the irresponsible politics of the individual have been called into question.
The icing on the cake in this situation is another negative forecast for the automotive market. This applies less to the US market, giving one a bleak prospect for the future of Europe. The lack of raw materials and parts, as well as their astronomical prices, have made it difficult to wait for a new car today, and the LMC Automotive forecasts see the future in even darker colors, lowering the forecast for light vehicle sales in Europe by as much as 2 million units per year in the next two years .
The Russian aggression continues, the world reacts - according to some it is adequate, according to others it is insufficient. The fact is, however, that we will feel the consequences of the events in Ukraine for a very long time.
