Russia-Ukraine Conflict: Macroeconomic Shocks And Working Capital Financing

Ukraine is considered the “breadbasket of Europe,” and as such, the disruption, particularly in the global food supply chain is not surprising. Russia and Ukraine are also significant suppliers of metals and other commodities. Russia controls about 10% of global oil supply and is the largest natural gas exporter globally. Furthermore, Russia supplies c.45% of natural gas to countries within the Eurozone, with one-third transported via gas pipelines located in Ukraine. Russia and Ukraine are also major exporters of agricultural commodities, particularly grains. Based on data from the Food and Agriculture Organisation, both countries accounted for about c.30%, c.80% and c.14% of global wheat, sunflower seeds, and maize exports respectively in 2020.