What effect will Russian sanctions have on your supply chain?
We’ve all seen the horrific scenes of the war on Ukraine and the reports of bombing civilian targets. There’s no question that the damage to infrastructure, buildings, industry and the citizens of Ukraine is devastating and will require many years to recover, if ever. Global supply chains are also being interrupted for anything that originates in Ukraine and Russia, or any business conducted in either country. Sanctions imposed by the U.S. and European countries have had a profound effect on businesses and will most likely affect your global supply chains. According to Interos, more than 2,100 U.S.-based companies have at least one tier-1 supplier in Russia, and 450 firms (U.S. and Europe) have tier-1 suppliers in Ukraine. But this is not where the real damage to supply chains is occurring. More than 190,000 firms in the U.S. have tier-3 suppliers in Ukraine or Russia. Tier-3 suppliers provide much of the world’s raw materials including aluminum, neon gas and rare earth elements used in the production of all semiconductors and electronics.