The Impact of the Russia-Ukraine War on Key Global Commodities
Open Access
- Author:
- Di Piazza, Benjamin
- Area of Honors:
- Supply Chain and Information Systems
- Degree:
- Bachelor of Arts
- Document Type:
- Thesis
- Thesis Supervisors:
- Robert Alexander Novack, Thesis Supervisor
John C Spychalski, Thesis Honors Advisor - Keywords:
- Supply Chain
Russia-Ukraine War
Commodities
International Relations
Hydrocarbons
Agriculture
Metals and Minerals - Abstract:
- Which commodities have seen price fluctuations caused by events tied to the Russia-Ukraine War, and to what extent have these commodity prices been impacted? To answer this question, an analysis of key events of the war as captured by global journalism, as well as commodity prices reported by the World Bank, are examined jointly to draw meaningful connections between the war and global commodity markets. This thesis zeroes in on three main commodity groups that are of primary interest due to their link to the war and widespread trading in global markets: hydrocarbons, agriculture, and metals and minerals. After analyzing price changes for each major area, the impacts on the business environment are explored, offering a better understanding of how a substantial European war in the twenty-first century can alter the global economy with immediacy. The findings of this thesis reveal that each of the commodity groups experienced extreme volatility after the onset of the war. With Ukraine and Russia being major suppliers of agricultural products, and Russia being a dominant player in hydrocarbons and metals and minerals, the world was forced to adapt accordingly. This thesis describes the actions taken by various governments including sanctions, embargoes, reallocation of resources, and engagement in new trade flows. Other themes explored in this thesis include Europe’s overreliance on Russian hydrocarbons, whether the war will expedite the world’s transition to renewable energy, and how commodity prices might behave moving forward.