Following the succession of diplomatic entries to the Kremlin over the past few weeks, in regards to the standoff between Russia and Ukraine steering a manifestly dangerous whirl with the progress by Vladimir Putin, the Russian President to count that the Ukrainian regions of Donetsk and Luhansk will become independent republics.
However, the European Union and the United States are concluding their first round of economic sanctions and more wide-ranging sanctions will be clasp in reserve to be applied if Russia progresses further with armed aggression against Ukraine.
Now, looking at the circumstances, the Irish businesses are dismayed over the financial sanctions against Russia that will unsettle their supply chains, at a moment when international shipping was already depressed due to the pandemic and when the global commodity prices and general inflation are getting out of range.
Russia is the exporter of fossil fuels, metals like aluminium, wheat, and other key commodities are critical to many global and Irish supply chains. It has been reported that more than 700 bulk carrier ships are loaded at Russian and Ukrainian ports every month, and if the crisis disrupts shipments even for a month it will create major shortages on global markets.
Concurrently, Rusal’s Aughinish alumina refinery in the Shannon Estuary, the largest in Europe, as it supplies 45 % of its aluminium production raw material to the European markets, might find itself in the red zone of sanctions. Notwithstanding, a global rush in demand for aluminium has already propelled the prices up over the past 12 months.
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