Ukraine crisis briefing

Inflation rate to reach 8%

The global inflation rate is now projected to rise to 8% in 2022 from 3.5% in the previous year, up from 7.5% in the last report.

World Bank warns of recession

// Asterisk (*) denotes the company HQ is in a country imposing economic sanctions on Russia. Companies with HQ in Russia are not included in these charts.

DOMESTIC SALES 

In July, it was reported that Polymetal was considering the sale of its Russian assets to avert the impact of sanctions imposed by Western nations against Russia in the wake of Moscow’s invasion of Ukraine.

Having closed the transaction, Polymetal would focus primarily on its operations in Kazakhstan.

RUSSIAN CONSEQUENCES 

Of the leading miners, Nornickel initially stated that operations were continuing and in May confirmed supply of palladium and nickel sales were unaffected with no change to its 2022 guidance. However, while not directly affected by sanctions, it is adjusting its supply routes.  

ONGOING SANCTIONS 

In April, the EU announced further sanctions against Russia, banning the importing of all forms of Russian coal from 10 August. This affects one-quarter of all Russian coal exports.

While this will impact Russian coal in terms of volumes, a rise in prices this year will help recoup some profits.  

IMPACTS IN CANADA 

In March, 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. Furthermore, in June 2022 it sold its operations to Highland Gold Mining for $340m.