Russia-Ukraine Crisis - Implications for the global economy and businesses
The Editors
5th April 2022
Special Report: Implications for the global economy and businesses
Impacts to Global Supply Chains
According to the report citing Dun & Bradstreet data, at least 374,000 businesses worldwide rely on Russian suppliers and at least 241,000 businesses across the world rely on Ukrainian suppliers. Countries with impacted supply chains include U.S., Canada, Italy, Australia, China, and Brazil.
In particular, research shows that European gas storage levels are critically low at 33% of capacity. And because of current EU sanctions on Russia, Germany has placed a hold on the Nord Stream 2 gas pipeline impacting 30 billion metric cubes of gas that were expected to enter the continent in 2022. Dun & Bradstreet data indicates that these issues, along with other geopolitical tensions and supply shortages will underpin high gas prices in the short-term. This is just one sector that will feel the strain of sanctions on global supply chains.
Top Insights In The Report
- There are 14,745 Tier 1, and 7.6M Tier 2 supplier relationships with Russian entities globally.
- 25 countries have a high dependency on Russia and Ukraine for a variety of commodities.
- Seven major Russian financial institutions and 13 Russian firms have been impacted by sanctions. As a result, the total corporate family members of these businesses include more than 16,748 entities spread across at least 21 countries.
Business Implications
- This crisis has the potential to widely exacerbate Europe’s energy crisis.
- The ripple effects of U.S., UK, and EU sanctions on Russian companies further cripples an already weakened global supply chain.
- Disruption of trade routes, freight costs, inaccessibility of critical raw materials could derail economic growth and add to inflationary pressure.
- Financial sanctions are impacting thousands of entities — shedding light on the need to understand Beneficial Ownership and Corporate Family Tree data.
Download the full report to learn more about the potential impacts to your business, and please contact your Dun & Bradstreet account manager today to learn how to manage your risk profile properly and plan for sustainable success.