Latest update: 8 June

Russia is progressing with its stated goal of controlling the two south-eastern regions of Ukraine, and while the exact courses of action for both sides remain uncertain, from an economic and investment standpoint, a continuation of the war is likely.

After a period of easing, prices of grains and oilseeds have begun to escalate again as several other exporting countries have introduced schemes to limit exports and preserve domestic supplies.


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.


Real GDP growth in the US is projected to fall to 2.7% by the end of 2022, which is slower than the 5.7% 4.9% growth recorded in the previous year.


Latest update: 8 June


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. 


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. 


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.


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.

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