The war between Russia and Ukraine has also hit commodity supplies, with prices of precious metals on the rise. Supply concerns and high demand pushed countries to seek alternatives for precious metals. Details in our news…
Rising oil and natural gas prices, grain supply shortages and the Russia-Ukraine war have deepened problems in many areas.
Precious metals have recently become another crisis topic.
Commodity exchanges have been shaken by problems in the supply chain of precious metals.
In March, prices of metals such as palladium, platinum and nickel rose sharply.
Supply concerns in metals that Russia is an exporter of could push prices even higher.
“In a sense, Putin imposed sanctions on the world”
Prof. Dr. O. Tanrısever, Head of the Department of International Relations at METU, said:
“Russia is one of the most important mineral producing countries in the world and a country that produces very critical minerals. Of course, during the Ukraine war, most countries did not foresee what the impact would be on the minerals, other than oil and gas, that Russia produces and supplies to the world markets. In fact, with a surprise decision, Putin imposed controls on the sale of these products to the international market. In a sense, he imposed sanctions on the world.”
Metals are indispensable raw materials in many fields. One reason for the increasing demand is the shift towards renewable energy.
Some metals, especially cobalt and nickel, are used in electricity generation from natural resources, electric vehicles and battery-battery technologies.
Russia is not the only producer
Russia is a major source of precious metals, but not the only producer.
Countries are looking for alternative sources. There are significant mineral reserves especially in South America and Africa, but the competitive environment is also reflected in prices.
Although there are solutions in the medium term, there are concerns that the crisis will deepen in the short term.
