In recent times, there has been a significant decline in business and economic activities. Compared to January, oil prices have increased by approximately 40%. According to the commodities attorney, the conflict in Ukraine has severely shaken the commodity markets. The most recent Commodity Markets Outlook from the World Bank outlines how trade and production of a number of commodities have been hampered by the conflict, particularly in areas where Russia and Ukraine are major exporters, such as energy, fertilizers, and cereals.

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These price hikes come on top of already constrained commodities markets brought on by a strong post-pandemic demand rebound and several pandemic-related supply limitations.

The main effects are the physical effects of blockades, destruction of productive capacity, and effects of sanctions on commerce and production. These sanctions are causing major global repercussions.

Numerous goods are exported from Russia and Ukraine. Russia is the top exporter of wheat, natural gas, pig iron, and nickel, in addition to contributing significantly to the world’s exports of crude oil, coal, and refined aluminum. Russia and Belarus primarily supply fertilizers. Ukraine is a significant exporter of food products, including sunflower seed oil and wheat.