Ukraine crisis briefing

3.3%

The world’s GDP growth is expected to fall to 3.3% by the end of this year, down from a forecast of 4.4% made in February prior to the invasion.

2.7%

RUSSIAN SUPPLY 

There has been a significant impact on the mining industry’s supply chain, as Russia is among the top three producers of diamond, gold, platinum group metals and nickel. It is also a key supplier of seaborne and met coal to European markets, alongside global exports of iron ore, steel and aluminium. 

COMPANY IMPACTS 

Faced by sanctions, Severstal, one of Russia's largest steelmakers, is reported to be redirecting product to other markets such as Asia, the Middle East and South America. Meanwhile, Ferrexpo announced force majeure due to concerns over the temporary suspension of the Pivdennyi port terminal, following the Russian invasion. 

ALTERNATIVE MARKETS

Polymetal has advised that sales of silver and gold to China, Kazakhstan and East Asia remain unaffected by sanctions, and “physical demand for gold in Russia has been supported by the decision of the Russian Central Bank to resume gold purchases in the domestic market”.

Meanwhile Ukraine, is principally a supplier of coal, iron ore and uranium, though its share of global production for each is small.

OVERSEAS MINERS

While Nornickel has stated that operations are continuing and Polymetal reported on 9 March that all its operations in Russia and Kazakhstan continue undisrupted, Canadian miner Kinross announced that it was suspending all activities in Russia, including its Udinsk development project in Khabarovsk Krai and operations at its Kupol gold mine.