- ECONOMIC IMPACT -

Latest update: 16 September 2022

Alongside the military strains visible on the Russian side is the prospective intensification this winter of Ukraine’s financial and energy crisis, aggravated by Russian military strikes on electricity and other civil infrastructure. However severe they may prove; such strains do not signify collapse.

Major European governments, with crucial support from the US, will use their fiscal heft to withstand the shock to the European economy from the interruption of most Russian piped gas exports and to provide the necessary unconditional support for Ukraine.

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

The World Bank has warned of the growing risk of a global recession, with the world economy in its steepest slowdown post a recovery since 1970.

// 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.

- SECTOR IMPACT: MINING -

Latest update: 16 September 2022

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.  

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