The Russian invasion ofUkraine it is not just a military issue, either for those directly involved or for Western countries. Beyond the geopolitical and humanitarian aspects, they are appearing more and more consequences, so to speak indirectly. And to cause a tornado America or in Europeit is not the flapping of a butterfly’s wings a Tokyobut the shelling of factories beyond the Dnipro.
Since the beginning of the conflict Europe and United States have gradually realized how full Ukraine is in the global market: There are many productive sectors that depended on it Kyiv for a surprising amount deliveries. Two examples in particular: the neon gasan extremely rare and indispensable element for the lighting, refrigeration and semiconductor industries, saw to 2021 Ukraine as world market leader. More than two-thirds of global production they came from there. The Russian invasion forced the closure of two giants, the cryoin engineering and the inhaz, each from Odesa and Mariupol, which alone produced half of the world’s neon gas. An analogous speech, with “monster” figures, albeit slightly lower, can be made with the kryptona mineral with numerous applications, not least in the medical field for magnetic resonance imaging and tactits production Kyiv he was (and is) the absolute leader. All of this is not without consequences in industry and ultimately in everyday life.
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Almost $3.5 trillion is the combined global value of two of the planet’s most important manufacturing sectors: Engines and that of Drug. And yet, few times in history has so much power seemed so fragile and unprepared as has happened to players in the automotive industry Big Pharma because of crisis geoeconomics triggered by the war in Ukraine. Soaring energy prices, difficulties building and repairing machinery, packaging and logistics collapsing: generics and trials were put on hold in 2022. And the Way of the Cross continues in the new year. It is pharmaceutical multinationals the first to admit their own Difficulty, in a recent letter to Commission European, He emphasizes that electricity prices have increased tenfold and raw material costs are rising between 50 and 160 percent. And to say they are margin managers in free fall. Worse than ever for products such as antibiotics, whose production, storage and transport consumes energy and machines. The weakest link is i generics: For this reason, antipyretics, antibiotics or stomach protectors have become less and less available in recent weeks.
But it can get even worse: Klaas ZuideveldManaging Director of pour mebargues that a reduction of investment level has caused many companies to postpone or cancel new drug projects, which will lead to a decline in research levels during and after 2023. In short, fewer treatments for Diseases because nobody wants to sail on sight and take risks.
The war also had a severe impact on the engine areawith Western countries, first the United Statesfights with interruptions the chain of global sourcing, especially in the field of wiring. For this reason, two weeks after the start of the war, the major German manufacturers announced the cessation of production at several European plants. On the other hand, about 3-4 kilometers wind in each car Cablea fundamental element as electrification progresses, and every car needs one wiring ad hoc. And their production took place mainly in Ukraine.
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This is like Washington and Brussels They decided to increase domestic production. But as if the cable crisis wasn’t enough, prices also rose nickelPlatinum, Palladium, Lithium, Cobalt, Aluminum, copper and other minerals used in the manufacture of vehicles electricbatteries, Panel solarSmart grid infrastructure and wind turbines.
However, the war in Ukraine has not only increased support for measures to extend chains deliver national or regional for the automotive industry: it has also created difficulties in funding such efforts. With booming budgets defensePriority in the face of aggressiveness shown by Russia and doubt it Iran and China may non-defense spending programs like those in favor of the auto and government sectors follow the same path drugit may be difficult for them to find them resources.