Supply chain to be affected
The Russia-Ukraine war will adversely affect the global supply chains. The weight of the economic impact will hinge on the duration of the conflict. The military conflict will only exacerbate the situation for companies in many industries, says Moody’s Analytics.
Inventory and reserves can help mitigate short-term supply–chain disruptions, but shortages will be inevitable if the war persists. The most salient adverse impact will be felt in European countries that are recipients of Russian oil and natural gas
Uncertainty over the conflict will lead to higher oil and natural gas prices worldwide. Automakers, electronic device manufacturers, phone makers, sectors that are reliant on semiconductor chips, might face risks. The global supply chains have been in a fragile state since the start of the pandemic.
